Crypto exchange Coinbase on Tuesday laid off 20 percent of its workforce, or about 950 people, to reduce its operating expenses amid fears of an economic recession. Coinbase co-founder and CEO Brian Armstrong said that as part of this round of downsizing, “we will be closing a number of projects that have little potential for success”.
Coinbase lays off 950 employees
The crypto company laid off 18 percent of its workforce, or about 1,100 people, in June last year.
“We also reduced headcount last year as the market started to correct, and at that time we could have made more cuts,” the CEO said.
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in each scenario,” he said in a statement.
And there was no way to substantially reduce our expenses “without a change in headcount”.
Armstrong said some other projects would continue to run as normal “with fewer people on the team”.
Affected team members will receive an email in their personal accounts with more information.
“We will be providing a comprehensive package to support you through this transition. For those of you in the US, this includes a minimum of 14 weeks of basic pay (plus 2 additional weeks per year worked), health insurance and other benefits,” the CEO said.
For employees with working visas, he assured, “We are also providing additional transition support for affected employees on work visas. Those of you based outside the US will receive similar support in line with your country’s employment laws.”
Notably, this is the second time the company is laying off people since 2021. In June 2022, it laid off 18 percent of its workforce, including 8 percent of Indian employees. The reason behind the layoffs was “overhiring”.
In addition, the company is also providing Talent Hub access to all laid-off employees so that they can get the help they need to pursue their career opportunities.
With inputs from IANS
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