Coinbase Cuts Jobs By 20% Due To Operational Cost
The move was announced by CEO Brian Armstrong in a Tuesday morning blog post. Armstrong said Coinbase runs various scenarios for revenue each year as part of its annual planning process, split between bull, bear and base cases.
Coinbase is laying off more staff and reducing costs to navigate the ongoing crypto bear market, which looks soon to be the longest on record. The company said is cutting an additional 950 staff as part of cost-saving measures that will see its operational expenses shrink by a quarter.
The move was announced by CEO Brian Armstrong in a Tuesday morning blog post. Armstrong said Coinbase runs various scenarios for revenue each year as part of its annual planning process, split between bull, bear and base cases.
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario,” Armstrong said.
“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.”
The cuts come around nine months after Coinbase laid off 18% of its staff, around 1,100 people, in anticipation of a US recession, and even rescinded a number of accepted job offers.
Coinbase’s latest cuts represent a further 20% headcount reduction. Affected staff immediately had their internal system access removed and would be informed of their employment status throughout the day.
Armstrong said US workers would receive a minimum of 14 weeks base pay (with two additional weeks per year worked), health insurance and other benefits.
Coinbase would provide transition support for employees on work visas, and those outside the US were said to receive “similar support in line with the employment laws of your country,” Armstrong said.