The largest US-based crypto exchange by volume is cutting its workforce to help survive the prolonged crypto bear market.
In a new blog post, Coinbase CEO and co-founder Brian Armstrong announced the laying off of 950 employees in an effort to reduce operating expenses.
“Coinbase is well capitalized, and crypto isn’t going anywhere. In fact, I believe recent events will ultimately end up benefiting Coinbase greatly (a large competitor failing, emerging regulatory clarity, etc.), and they validate our long-term strategy. But it will take time for these changes to come to fruition and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge.
Therefore, I’ve made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people(2). All impacted team members will be informed by today.”
Armstrong goes on to explain that, when planning for 2023, Coinbase executives saw no other way to save money than to implement a “headcount reduction.”
“As part of a headcount reduction like this, we will be shutting down several projects where we have a lower probability of success. Affected teams will receive communication on this today. Our other projects will continue to operate as normal, just with fewer people on the team.”
Moving forward, Armstrong says he and his team are still optimistic about crypto and the company in the long term.
“Despite everything we’ve been through as a company and an industry, I’m still optimistic about our future and the future of crypto. Progress doesn’t always happen in a straight line, and sometimes it can feel like we’re taking two steps forward and one step back…
Dark times also weed out bad companies, as we’re seeing right now. But those of us who believe in crypto will keep building great products and increasing economic freedom in the world. Better days are ahead, and when they arrive, we’ll be ready.”
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