Cryptocurrency exchange platform operator Coinbase Global, Inc. is laying off 18% of its employees as the cryptocurrency market continues to tumble.
CEO Brian Armstrong, in an open letter, said “Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn.” The exchange has more than 4,900 employees, according to its website.
“In the next hour every employee will receive an email from HR informing if you are affected or unaffected by this layoff. Every affected employee will receive an invitation to have a direct conversation with your HRBP and the senior leader of your organization,” he added.
Moving ahead, Armstrong warned of a crypto winter. “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. In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment,” he said.
Coinbase’s market value has plunged as investors continue to sell off crypto, in expectation of sharp increases in interest rates to tackle inflation.
All major cryptocurrencies are down more than 50% from their all time highs. Bitcoin, which hit an all-time high of $69,000 in November 2021, has now lost two-thirds of its value. The cryptocurrency is currently trading at $22,278.13. The digital currency has lost nearly 25% in the past 5 days.
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