- The new move will result in the loss of an additional 950 workers.
- Coinbase also has plans to end some low-probability initiatives.
Amid the continued bear market and FTX outbreak, Coinbase CEO Brian Armstrong intends to lay off another 20% of the company’s personnel in an effort to reduce operational expenditures. Coinbase had reduced its personnel by 18% in June of last year, and the new move will result in the loss of an additional 950 workers. At the end of September, the cryptocurrency exchange had 4,700 workers.
Coinbase CEO Brian Armstrong said in a blog post on January 10 that the company was able to reduce quarterly operational expenditures by around 25%. About 950 employees will be let go as a result. Operating costs, he says, must be cut, and that can’t be done without reevaluating staffing levels.
Smaller Workforce Amid Decline in Trading Volume
Coinbase also has plans to end some low-probability initiatives. It’s business as usual for the other initiatives, but with a smaller workforce. There will be a public 8-K filing today and a Q4 earnings call in February when further information on the scenarios and expenditure forecast for 2023 will be revealed.
A notification was sent to the affected users’ individual accounts via email. Former workers of Coinbase may take advantage of a generous benefits package. Workers in the United States will be compensated with at least 14 weeks’ worth of salary in addition to health insurance and other perks. Moreover, the business intends to provide supplementary transition assistance to affected workers who are currently on a work visa.
Analysts at the financial services company Cowen recently issued a downgraded rating for Coinbase. After the demise of FTX and the general decrease in trading volumes in the cryptocurrency market, there has been a heightened focus on the crypto industry and its businesses.
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