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Coinbase lays off 950 jobs and cuts salaries: CEO fears ‘crypto contagion’

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January 2023 is going to be tough for the crypto world: While Silvergate crashed in the stock market thanks to the FTX scandal, Coinbase lays off 20% of its employees especially in this difficult period with the aim of reducing operating expenses and restoring service finance.

The company has released an official blog post signed by Coinbase CEO and co-founder Brian Armstrong, explaining that the macroeconomic recession in 2022, as well as the decline of crypto rivals, has hit the platform hard. Indeed, the same Armstrong says he fears ‘more contagion’It should be understood as a chain reaction after FTX’s bankruptcy and Sam Bankman-Fried’s loss.

Despite everything, considers himself optimistic: “Coinbase has good capital and cryptocurrencies are not going anywhere. I believe recent events will ultimately benefit Coinbase greatly (major competitor fails, regulatory clarity emerges, etc.) and confirm our long-term strategy. However, these changes will take some time to materialize and we need to make sure we have the structure and efficiency to weather the downturns in the cryptocurrency market and seize the opportunities that may arise.”.

Brian Armstrong, who later fired employees about 950 out of an estimated total of 4,700will receive 14 weeks of basic salary, health insurance and visa support. Compensation packages for employees outside the United States will be similar in accordance with national law. However, this Second round of layoffs in less than a year For Coinbase following the layoff of 1,100 employees in June 2022.

Source: Every Eye

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