The biggest crypto exchange by volume in the United States is reducing its employees to withstand the extended bear market.
In an attempt to cut operational expenditures, Coinbase CEO and co-founder Brian Armstrong announced the layoff of 950 workers in a recent blog post.
“Coinbase is well financed, and cryptocurrencies are here to stay. In fact, I think that recent developments (the demise of a major rival, the emergence of regulatory clarity, etc.) will eventually be very beneficial to Coinbase, and they reinforce our long-term approach. However, it will take time for these changes to materialize, and we must ensure that we have the operational efficiency necessary to weather crypto market downturns and seize emerging possibilities.
Therefore, I’ve taken the painful choice to decrease our operational expense(1) by about 25% Q/Q, which involves laying off around 950 individuals (2). Today, all affected team members will be notified.”
Armstrong continues by explaining that, in preparing for 2023, Coinbase officials found no other option to save money except a “headcount decrease.”
“As part of this kind of staff reduction, we will discontinue some initiatives with a lesser likelihood of success. Today, affected teams will get communications on this. Our other initiatives will continue to function normally, although with a smaller staff.”
Armstrong argues that he and his team are still long-term optimists about crypto and the firm.
“Despite all our business and industry have gone through, I remain hopeful about our future and the future of crypto. Progress is not always linear, and sometimes it might seem like we’re going two steps ahead and one step back…
As we are now seeing, adversity also expels poor businesses. Those of us who believe in cryptocurrencies will continue to develop innovative products and expand global economic liberty. We will be prepared for better times when they come.”