CEO Brian Armstrong cited the reason as a possible recession
• CEO Brian Armstrong cited the reason as a possible recession
Coinbase is laying off 18% of its full-time workers amid a collapse in its stock and crypto prices, according to an email sent to employees on Tuesday morning.
Coinbase has roughly 5,000 full-time workers, translating to a head count reduction of around 1,100 people.
CEO Brian Armstrong cited the reason as a possible recession, and a need to manage Coinbase’s burn rate and increase efficiency. He also said the company grew “too quickly” during a bull market.
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” Armstrong said in a blog post.
Coinbase had initially said it was pausing hiring. Two weeks later, the crypto giant announced that it was extending the freeze for the “foreseeable future.” Earlier this year, Coinbase said it planned to add 2,000 jobs across product, engineering, and design.