20% of Coin base’s Staff Are Laid Off as the Crypto Winter Continues
About 950 employees are estimated to be laid off at Coinbase. In another layoff in June 2022, the company laid off about 1,100 employees.
Coinbase, one of the most reputable cryptocurrency trading platforms, has announced that it will lay off about 20% of its workforce. With about 950 employees, this is one of Coinbase’s second largest layoffs, initially, he laid off about 1100 employees in June 2022.
This second, equally brutal layoff comes at a time when an already-suffering cryptocurrency market is collapsing, with most cryptocurrency prices reaching all-time lows.
In addition to the market crash, there was the collapse of FTX, further hurting investor confidence. Crypto investors are hesitant to withdraw funds from exchanges or invest due to low market confidence, causing further damage. Bitcoin, which was worth around $65,000 at the end of 2021, plummeted to $17,000 in the final quarter of 2022. Other major cryptocurrencies like Ethereum have undergone similar developments.
Already booming in 2021, cryptocurrency exchanges are in a desperate situation and are now worried about falling share prices and valuations.
Coinbase, which went public in April 2021 with a stock price of $370, has now fallen to $43 after the cryptocurrency crash.
Cryptocurrency companies like Coinbase remain steadfast in their belief in the market despite the turmoil. Coinbase CEO Brian Armstrong said in a blog post that Coinbase is “well capitalized and cryptocurrencies are not going anywhere.”
Regarding the layoffs, Armstrong wrote, “We need to ensure adequate operational efficiencies to weather the crypto market downturn and take advantage of opportunities that arise.”
Just into 2023, Coinbase shares are up about 20%. Bitcoin’s value also rose by 4%. Citing these figures, a cryptocurrency enthusiast affirms that the cryptocurrency market will recover in his 2023.