Crypto Crash Latest: Coinbase Slashes Staff by 18%, Industry Prepares For A 'Crypto Winter'

Milei's Bitcoin Vision: A Tax Declaration Bill for Argentina — Bitcoin Tax Declaration Bill Introduced by Milei in Argentina

Coinbase, a popular cryptocurrency exchange, is laying off a fifth of its workforce as it braces for what CEO Brian Armstrong predicts will be an impending “crypto winter.”

Coinbase CEO @brian_armstrong announced today the difficult decision to reduce the size of the Coinbase team by 18%. More details and rationale in Brian’s email to employees, which has been made public for all to see ➡️ https://t.co/SpdZU3KdpS

— Coinbase (@coinbase) June 14, 2022

He added in a company-wide post that was later published on Medium that the move to slash staff by 18 percent was made to “guarantee we remain healthy throughout this economic crisis.” After a series of conversations with the management team, he said “many truths” had dawned on him.

Armstrong mentioned how the crypto space’s business dynamics were fast shifting.

After a 10-plus-year booming economy, he believes they are facing a recession. Another crypto winter might be triggered by a recession, which could endure for a long time.

#coinbase is down 90%. Everyone that bought the IPO got rekt. @brian_armstrong please explain. I tried to save them. You rekt them. pic.twitter.com/hLDLFyQ4Qt

— Richard Heart (@RichardHeartWin) June 13, 2022

Apart from the general state of the crypto industry, Armstrong cited the company’s allegedly bloated employees as a rationale for reduction. The number of employees has more than quadrupled in the last 18 months, despite mounting demand to cut costs.

However, the company eventually “overhired,” according to the CEO, who also stated that he bears himself responsible for this. Coinbase has endured four crypto winters, but it is now tightening its budget and managing expenditure with a “new approach.”

Staff members who are affected are encouraged to speak with the HR business partner or even a senior supervisor. However, to avoid potential reactions from dissatisfied employees, the company opted to limit access to Coinbase services for laid-off personnel.

The denial of access was to “guarantee not even a single individual made a reckless decision that endangered the firm or themselves,” Armstrong said because certain staff had access to classified customer information.

According to peoplematters, Affected employees will be paid for 14 weeks, with an extra two weeks paid for each year of service performed, according to Coinbase. As a condition of the severance deal, they would have healthcare coverage and mental health care for four months.