Amidst a volatile market in cryptocurrencies, Coinbase announces lay-offs in June of 2022. We dive into the details of the astonishing announcement. This article is brought to you by Digital Financial Market
Coinbase Faces Downsizing During Bitcoin Fallout
As of mid-June 2022, the world’s largest cryptocurrency exchange, Coinbase Global has announced a 18% reduction in staff as the company struggles to handle operating expenses and a dwindling user base.
The cryptocurrency industry has been hit hard this past year, with the drop in Cryptocurrency valuation wiping off over $1 Trillion in Total Market Cap over the sector.
Coinbase Announces Lay-Offs
Original Statement Available Here:
See Coinbase CEO Official Announcement on Reducing Staff 2022
Coinbase: An Industry Leader in Cryptocurrency
Coinbase has been an industry leader in the rise of Bitcoin, Ethereum, and many Cryptocurrency projects. This announcement for lay-offs hits as a shock from the once high-flying $40+ Billion valuation the company claimed just last year.
Brain Armstrong, Coinbase CEO & Founder, has held policies that have encouraged major movements in the entire sector over the past decade. Brain and his team has made famous moves such as Tesla’s Multi-Billion Dollar Bitcoin Purchase of 2020 and the first Cryptocurrency Company IPO on the US Stock Market in 2021.
These motions spurred the blockchain into the public marketplace, and “internet money” may never be the same (at least digitally). However, as the crypto cycle crashes, Coinbase expressed some key points as to why they had to reduce their team.
The Evolving Blockchain: What’s Next For Coinbase?
As Coinbase calculates the profit margins of users and cryptocurrency projects, expenses have led the Senior Leaders to make the tough decision to lay-off employees on their team.
Coinbase claims:
- We’re In A Recession – Macroeconomic challenges are tightening margins
- Cost Management Is Essential – Bear markets require restructuring
- We Grew Too Fast – An accelerated on-boarding left gaps
The executive team had come to this decision with a focus on the need to manage expenses and increase efficiency. However, their choice did not leave departing employees high and dry, as generous severance packages were offered to leaving team members.