The U.S.-based crypto company previously announced plans to halt hiring.
CEO Brian Armstrong announced on Tuesday that the current workforce will be slashed by around 18%.
Armstrong noted that affected employees will receive financial and career support from Coinbase as they navigate this trying period.
Declining market conditions were mentioned as the key reason behind the decision.
Major cryptocurrency company Coinbase has announced a decision to lower its employee count amid uncertain market conditions and economic recession. The news broke on Tuesday via an official note from the firm’s co-founder and CEO, Brian Armstrong.
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. I want to walk you through why I am making this decision below, but first I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me.
Initially, the San Francisco-based company planned to expand aggressively and double its workforce in 2022. However, the push was halted based on unfavorable market conditions as reported by EthereumWorldNews back in May.
At the time, COO Emilie Choi said that the company decided to prioritize resource management and depend on its current employees rather than expand.
Shortly after June, the crypto giant also disclosed that multiple accepted offers could be rescinded due to the tricky macro-environment and the looming crypto winter. Also, the company recorded heavy losses during its Q1 2022 earnings report in the region of $430 million.
The latest word from CEO Armstrong assured affected employees of some support to help them through the transition. According to the official announcement, laid-off staff will receive a severance package.
Coinbase will also provide health insurance and mental health support for months. Finally, the firm revealed that the company plans to connect affected employees with job opportunities and openings in other firms, including top crypto VC funds and portfolio companies from Coinbase Ventures.
Crypto Winter Hits Coinbase, Crypto.com, and Other Companies
Armstrong’s note is the latest in a string of lay off happening throughout the crypto industry as companies brace for what might be a long bear cycle. Gemini and Crypto.com also announced plans to slash their workforce in a bid to survive weather current conditions.
In contrast, the world’s largest exchange is reportedly expanding and hiring as revealed by Changpeng Zhao. Cz disclosed that Binance has a healthy war chest and could hire up to 2,000 employees across different departments like product, marketing, and business development to name a few.