Coinbase, the largest cryptocurrency exchange in the United States, plans to lay off up to 1,100 employees as part of a major restructuring announced earlier today.
Coinbase’s stock has now dropped nearly 7% as a result of the news. They are now on track to set another record low of $48, having dropped 79% since the beginning of the year.
The crypto giant has approximately 5,000 full-time workers, which means that its workforce will be reduced by approximately 18%.
A Brutal Bear Market
CEO Brian Armstrong, who purchased a $133 million Bel Air mansion in January, has admitted that the company’s explosive growth was not sustainable, and the exchange must now adapt to a new environment. Armstrong predicts that the US economy will enter a recession, triggering a long-lasting crypto winter.
He also claims that during the bull market, the exchange hired far too many people.
While the decision to drastically reduce the workforce was “difficult,” it was the most “prudent,” according to chief operating officer Emilie Choi.
Nonetheless, the Coinbase COO emphasised that the company’s financial position was sufficient to “power through” any crypto winter.
Earlier this month, the leading American exchange halted hiring and rescinded job offers.
Coinbase, like BlockFi and Gemini, has laid off a large portion of its workforce.
Nonetheless, Ripple recently announced that it would defy the trend and hire more staff because of sufficient cash reserves.
