While the bear market is settling in for the long term, Coinbase is again laying off staff, indicating that it is parting with 950 employees. We take stock of this new starting wave.
Coinbase lays off 950 people
In the current bear market context, the cryptocurrency exchange Coinbase has chosen to reduce its expenses, and it is in this logic that the company is laying off 950 people. Brian Armstrong, the company’s CEO, informed of the measure in a blog post published today:
“I have therefore made the difficult decision to reduce our operating costs by approximately 25%, which includes the layoff of approximately 950 people. All affected team members will be notified by today. […] I also want to make it clear that while some of the factors that brought us here are beyond our control, the responsibility rests with me as CEO. »
Just six months ago, Coinbase had already resorted to laying off 1,100 people, which at the time represented 18% of its workforce. Brian Armstrong also believes that it could have been wise for Coinbase, at that time, to separate from a larger part of its staff.
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A restructuring plan to optimize the future
This decision to lay off many employees again stems from a restructuring plan decided upon when setting annual objectives, that Coinbase establishes according to market conditions.
In a document filed with the Securities and Exchange Commission (SEC), Coinbase indicates that the cost of said restructuring plan should be between 149 and 163 million dollars, and that within this sum, 58 to 68 million will be earmarked for severance pay. These charges are expected to be largely borne during the first quarter of this year.
Still in order to reduce expensesCoinbase informs that some projects that have “a lower probability of successwill also be dropped. It is therefore on these services that the exchange will make layoffs, but also in other departments, which will have to operate with fewer people.
Brian Armstrong indicates that the employees concerned will receive an email to be invited to an interview, and have not yet no more access to the Coinbase system in order to protect customer information. Despite everything, the manager insists on the conditions that motivated the choices of his company:
“To those of you leaving, please know that this does not reflect your work or your contributions to Coinbase. I believe we have an incredible team, and you have all been important members of it. Instead, it is a reflection of the current economic climate and the crypto market. »
While writing these lines, Coinbase stock was trading at $39.7, which represents a devaluation of more than 90% since its IPO. However, the company believes that all these measures will allow it to come back stronger in the next bull market.
👉 Also in the news – Huobi cryptocurrency platform to lay off 20% of its staff
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Source: Coinbase, SEC
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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