Coinbase will cut 20% of its personnel in order to weather the crypto market collapse.
In a business blog post on Tuesday (Jan. 10) morning, CEO Brian Armstrong revealed the layoffs, which affect 950 of Coinbase’s 4,700 employees. It is the third time the bitcoin exchange has cut personnel since June of last year.
The layoffs come after the corporation decided in June 2022 to cut its employees by 18%, citing a probable recession and the need to limit the company’s burn rate as reasons. He also said that the corporation expanded “too swiftly” during a bull market.
Coinbase slashed another 60 jobs in November, this time in its recruiting and institutional onboarding departments.
In his statement on Tuesday, Armstrong mentioned previous job losses, stating that “in hindsight, we should have cut farther at that time.”
Other cryptocurrency companies have reduced their headcount in recent months and weeks, including Genesis, which reportedly laid off 30% of its workforce last week. Kraken, a cryptocurrency exchange, cut 1,100 positions in November.
The latest layoffs come just days after Coinbase agreed to pay a $100 million settlement to the New York Department of Financial Services following an examination that discovered “serious deficiencies” in the company’s compliance program.
