After the rescindment of job offer letters, Coinbase announced plans on Tuesday to lay off 18% (1,100) of its staff as crypto winter gets colder.
CEO Brian Armstrong wrote:
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period”
He added that Coinbase has survived through all the previous four crypto winters and this time won’t be any different.
Armstrong also laid out 3 key reasons for this “difficult decision” – current economic conditions, the firm’s attempts to cut costs, and “over-hiring” of employees during last year’s bull run in anticipation of a continued rally.
Laid-off employees will be immediately cut off from Coinbase’s integration. A letter will be sent to each employee to communicate if they are “affected” or “unaffected.”
Coinbase assured the affected staff of severance pay depending on the time each employee has served the firm. Those sacked will also be provided continued health insurance and mental health support for a few months. In addition, Coinbase will assist them in finding employment opportunities across its portfolio of companies.
Coinbase isn’t the only firm to bite the bullet. Several crypto firms, including BlockFi, Crypto.com, and Gemini, have recently announced plans to lay off staff amid the crypto market downturn.
