Coinbase Global announced on Tuesday that it will lay off 18 percent of its workforce in another sign of a deepening crypto downturn that has eroded hundreds of millions of the total cryptocurrency market value.
The US’s largest crypto exchange is following in the footsteps of other cryptocurrency-related companies that have recently cut staff, including rival exchange Gemini Trust and lender BlockFi, both of which cited the arrival of a crypto winter — an ongoing downturn — as the reason for the Redundancies.
Coinbase, of which Brian Armstrong is CEO, had been hiring aggressively in recent years, with the workforce exploding by about 1,200 this year.
The company plans to reduce around that amount and finish the current quarter with around 5,000 employees.
Until recently, the company failed to acknowledge the arrival of a crypto winter, even though its shares have fallen since going public more than a year ago.
They are down nearly 80 percent year-to-date, according to Bloomberg data.
Laid-off employees will receive a minimum of three and a half months’ severance pay plus two weeks for each year of service.
The cryptocurrency’s downturn began shortly after Bitcoin hit its all-time high in November.
Earlier this year, the collapse of stablecoin TerraUSD and its associated Luna token wiped out billions in market gains.
Last week, coin prices plummeted after crypto lender Celsius Network froze withdrawals amid what many believe to be a bank run.
https://www.independent.ie/business/world/coinbase-slashes-18pc-of-staff-as-cryptocurrency-crash-deepens-41753498.html Coinbase cuts 18 percent of staff as cryptocurrency crash deepens