The cryptocurrency exchange Coinbase is laying off almost a fifth of its employees amid falling stock prices and cryptocurrencies.
The company will cut 18% of full-time jobs, according to an email sent to employees on Tuesday morning. Coinbase has about 5,000 full-time employees.
In the company’s blog, Coinbase CEO Brian Armstrong blamed the company’s poor performance and the need to cut staff.
“We are growing too fast. At the beginning of 2021, we had 1,250 employees. At that time, we were at the very beginning of the “bull run”, and the acceptance of cryptocurrencies was growing rapidly. New cryptocurrency scenarios appeared almost every week. We saw opportunities, but we needed to significantly increase our team to be ready to compete in a wide range of bets, given the scale of our growth (~ 200% y / y since early 2021) is very difficult to grow at the right pace, although we tried to do everything it is possible to achieve the desired result, in which case it became clear to me that we overdid it. ” – wrote the CEO of the company.
According to Armstrong, economic conditions are “changing rapidly” and we are entering a recession after a ten-year boom.
He added that managing costs in a crisis is crucial and needs to manage costs and increase efficiency. Armstrong warned that crypto-winter may be in the process of preparation – or perhaps it has already come.
Acknowledging the difficulties of the decision, Armstrong said it was a step necessary to “ensure a bright future” for the company.
Against the background of this news, shares of Coinbase fell by almost 7%. They are now on track to reach another record low of $ 48, down 79% since the beginning of the year.