Cryptocurrency exchange Coinbase Global Inc COIN on Tuesday announced that it will lay off around 950 employees, or about 20% of its workforce, due to the downward trend in the crypto market and the broader macroeconomy.
The layoffs will take effect immediately.
In a statement, Coinbase CEO Brian Armstrong said Coinbase is well-capitalized, and that crypto isn't going anywhere.
He added that recent events like the collapse of cryptocurrency exchange FTX FTT/USD, investigations surrounding competitor exchange Binance BNB/USD, and regulatory clarity will benefit Coinbase, however, the change will take time to take effect and therefore the company needs to have operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge.
"While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount," he said.
The company will also be shutting down several projects where it has a lower probability of success, but other projects will continue to operate as normal, just with fewer people on the team.
The layoffs will also impact teams working in the company's Talent Hub, the division that helps employees find new career opportunities.
Comprehensive Package For Affected Employees
To support the impacted employees, Coinbase will be providing a comprehensive package including a minimum of 14 weeks base pay, two additional weeks per year worked, health insurance, and other benefits.
"To those of you who will be leaving, please know that this is not a reflection of your work or contributions to Coinbase. I believe we have an incredible team, and all of you have been important members of that. Instead, it’s a reflection of the current economic climate and crypto market," Armstrong stated.
Next: FTX US President Intends To Provide More Details On Crypto Exchange's Collapse
Photo: courtesy of Coinbase.
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