Coinbase Lays Off 20% of its Employees as Crypto Winter Continues

According to estimates, around 950 employees are laid off from Coinbase, In an another layoff round back in June 2022, the company let go around 1100 employees

One of the most renowned crypto trading platforms, ‘Coinbase’ announced that it is laying off around 20% of its total workforce. Nearing around 950 employees, this is one of Coinbase’s second biggest layoff, the first one being in June 2022, where the company laid off around 1100 employees.

This second and equally brutal round of layoffs comes right in at a time where the already suffering crypto markets are coming down crashing and prices for most cryptocurrencies are touching their all time low.

Adding onto the crashing markets, came the FTX collapse that further damaged investor confidence and trust. With low trust and confidence in the markets, crypto investors are either pulling their money out of exchanges or are hesitant to invest causing further damage.

Worth near $65,000 at the end of 2021, Bitcoin came crashing down to $17,000 throughout the last quarter of 2022. Other major crypto currencies such as Ethereum also followed a similar trajectory.

Amongst all the despair, cryptocurrency exchanges, which were booming back in 2021 are now worried about lowering share prices and valuation.

Coinbase, which went public in April 2021 had a share price of $370, following the crypto crash, the share prices are now down to $43.

Despite all chaos, crypto firms such as Coinbase are firm with their belief on the market. Coinbase CEO Brian Armstrong, in his blog post said that Coinbase is “well capitalized, and crypto isn’t going anywhere”.

Talking about the layoffs, Armstrong wrote that “we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge.”

Right after the start of 2023, the share prices of Coinbase have gone up about 20%. Bitcoin value also climbed up 4%. Quoting these figures, crypto enthusiasts are still stern with their belief that the crypto market will bounce back in 2023.

 

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