Coinbase Lays Off 18 Percent of Workforce , as 'Crypto Winter' Looms. Coinbase Lays Off 18 Percent of Workforce , as 'Crypto Winter' Looms. The announcement that the company will lay off nearly a fifth of its employees was revealed via an email sent out by CEO Brian Armstrong.
It comes amid a recent plunge in its stock prices and a significant decline in the value of crypto.
The layoffs equate to 1,100 people of the 5,000 that currently work for Coinbase.
We appear to be entering a recession after a 10+ year economic boom.
, Brian Armstrong, Coinbase CEO, via CNBC.
A recession could lead to another crypto winter, and could last for an extended period.
, Brian Armstrong, Coinbase CEO, via CNBC.
While it’s hard to predict the economy or the markets, , Brian Armstrong, Coinbase CEO, via CNBC.
... we always plan for the worst so we can operate the business through any environment, Brian Armstrong, Coinbase CEO, via CNBC.
Armstrong also stated that the company has grown "too quickly" during the recent bull market.
Our employee costs are too high to effectively manage this uncertain market, Brian Armstrong, Coinbase CEO, via CNBC.
While we tried our best to get this just right, in this case it is now clear to me that we over-hired, Brian Armstrong, Coinbase CEO, via CNBC.
Coinbase shares are down 85 percent from their highest value.
The COO of Coinbase, Emilie Choi, stated that it is a "very difficult decision for Coinbase.".
However, she stated that it "felt like the most prudent thing to do right now" due to economic instability.
We will power through any macro environment, any crypto winter [...] The reality though, is that we have to adjust when we feel that there’s a very dynamic economic environment in play, Emilie Choi, Coinbase COO, via CNBC
