Coinbase lays off 18% of its workforce

Amidst concerns of a looming recession, cryptocurrency exchange Coinbase is cutting 18% of its workforce. Brian Armstrong, the company's CEO informed its employees on Tuesday in a note. He said that the company had "overhired" its staff during a crypto boom and is now letting go of about 1,100 people, reducing its workforce to 5,000.


Mr. Armstrong wrote, "At the time, we were in the early innings of the bull run and adoption of crypto products was exploding. There were new use cases enabled by crypto getting traction practically every week." At the beginning of 2021, the company had 1,250 employees and Mr. Armstrong said it "grew too quickly." On June 2nd, Coinbase said it would rescind job offers and extend its hiring freeze to battle the economic downturn.


As the layoff announcement went out on Tuesday, it signaled further stress on the platform as market drops hit cryptocurrency assets. The company offers benefits for employees who are laid off. According to Mr. Armstrong's note, these include at least 14 weeks’ severance pay, four months of COBRA health coverage in the United States, four months of mental health support and assistance finding new work. 

Source: The New York Times