Coinbase lays off a fifth of workers as crypto downturn continues

Cryptocurrency change Coinbase is the newest tech firm to announce mass layoffs. In an e-mail to workers on Tuesday, CEO Brain Armstrong mentioned the corporate could be letting 950 staff go because it makes an attempt to “weather downturns in the crypto market.” The e-mail was made public on the Coinbase blog, and the corporate additionally submitted an 8-K filing with the news.

“While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount,” Armstrong wrote in his memo. Employees within the US will obtain a minimal of 14 weeks base pay plus two extra weeks per yr spent on the firm. Affected staff will obtain an e-mail in the present day.

“The FTX collapse and the resulting contagion has created a black eye for the industry,” Armstrong told CNBC, and prompt that extra ache could also be but to return. “We may not have seen the last of it — there will be increased scrutiny on various companies in the space to make sure that they’re following the rules… Long term that’s a good thing. But short term, there’s still a lot of market fear.” 

Coinbase’s layoffs come amidst a broader downturn within the crypto market. The worth of Bitcoin has plummeted in current months, and is down round 58 % over the previous yr in accordance with CNBC. Coinbase’s shares have trended in the same course since going public in April 2021. Its inventory is buying and selling at underneath $40, down from a excessive of over $340 in 2021.