- Earlier this month, Coinbase announced that it would be extending its hiring freeze.
- Shares of Coinbase have fallen almost 7% on the announcement.
According to Coinbase CEO Brian Armstrong:
“In the next hour every employee will receive an email from HR informing if you are affected or unaffected by this layoff,” the Coinbase CEO said in a blog post.
An economic downturn that might trigger another crypto winter and linger for a lengthy time, according to Armstrong, was a factor in the company’s decision to reduce employment. To keep expenses down during turbulent market circumstances, the crypto exchange eliminated 18% of its personnel.
1/ Today I shared that I've made the difficult decision to reduce the size of our team at Coinbase by about 18%. The broader market downturn means that we need to be more mindful of costs as we head into a potential recession.— Brian Armstrong – barmstrong.eth (@brian_armstrong) June 14, 2022
In the latest symptom of the financial market collapse striking the crypto sphere, Celsius Network, a prominent US bitcoin lending firm, has frozen withdrawals and transfers.
Coinbase Shares Plummet Further
Earlier this month, Coinbase announced that it would be extending its hiring freeze for the foreseeable future and rescinding several previously accepted job offers. Employees’ severance and other termination benefits accounted for most of the company’s anticipated restructuring costs, which were disclosed in a filing.
Shares of Coinbase have fallen almost 7% on the announcement. It is on course to hit a new record low of $48 after falling by an astounding 79% since the beginning of the year. Approximately 5,000 full-time workers work for the crypto behemoth, which implies its employment will fall by approximately 18 percent.
CEO Brian Armstrong has stated that it is no longer sustainable despite the company’s rapid expansion and that the exchange must adapt to a new climate. Armstrong predicts a long-lasting crypto winter if the US economy goes into recession.