Coinbase Will Lay Off 18 Percent of Its Workforce

Coinbase stated that it would lay off 18 percent of its workers due to falling cryptocurrency values and a global economic slump.

In an email to staff, CEO Brian Armstrong stated that the crypto exchange must keep costs low to survive a bear market, which demands a “different mindset” to navigate. The announcement comes after cryptocurrencies suffered a setback to begin the week. Bitcoin has dropped roughly 20; the reason behind this was crypto lender Celsius Network’s decision; it banned consumers from withdrawing funds due to “extreme market conditions.”

The whole crypto market cap has lost $2 trillion in value in less than a year. It has recently fallen below $1 trillion for the first time since early 2021.

Rising interest rates and high inflation appear to be driving investors away from risky assets such as cryptocurrency; moreover, investor confidence in digital currencies has dwindled since many stablecoins lost their 1-to-1 peg with the US dollar last month.

In the message, Armstrong informed staff that Coinbase had grown too quickly, adding that its headcount has increased by about 200 percent since the beginning of 2021.

Coinbase Stops Hiring

Coinbase announced that it would halt hiring and withdraw job offers to those who had previously taken positions with the exchange.

Experts predict that crypto companies will face even more difficulties if cryptocurrency values continue to plummet. Crypto.com said on Saturday that it would lay off 5% of its personnel owing to a “market slowdown.”

Gemini, a cryptocurrency exchange, revealed earlier this month that it would lay off 10% of its workers due to the “crypto winter.”

Bitcoin is currently trading slightly above the $24,000 mark. It is the lowest price for the digital item in nearly two years. Due to this, some have lost a considerable amount of their portfolio in terms of dollar value. Others, however, have found this to be a selling factor. Furthermore, many investors use historical data, such as what happened when the digital asset price fell.