Online crypto trading platform Coinbase announces that it plans to lay off 18% of its workforce. The announcement was made by the CEO of the company, Brian Armstrong.
According to the company, this harsh decision was made to cut operational costs amidst the economic downfall. Coinbase is undergoing a financial crisis after successfully being in the game for over a decade.
The affected employees will receive an email notification in their personal email IDs as the company has cut access for them to Coinbase’s system.
On the contrary, the company had announced a few months earlier that it was planning to hire more than 1000 new employees in India. Coinbase mentioned that the decision was a step towards its goal of expanding its operations in India, which has the most number of crypto owners.
Coinbase has weathered four big crypto winters, and they have achieved long-term prosperity by carefully regulating their spending throughout each down spell. With this new monetary crisis, the company has taken this step to reduce the workforce.
Armstrong said, “At the beginning of 2021, we had 1,250 employees. At the time, we were in the early innings of the bull run, and the adoption of crypto products was exploding. There were new use cases enabled by crypto getting traction practically every week.”
He further added that they spotted the opportunity, but they needed to substantially extend their staff to be positioned to compete in a wide range of bets, and given the scope of their development, it’s difficult to grow at precisely the appropriate rate. Coinbase firmly believes that these new changes in the organization will help it achieve more efficiency.