Coinbase to cut 20pc of workforce amid market downturn

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Cryptocurrency exchange platform Coinbase announced its plan to cut 950 jobs, accounting for about one fifth of its workforce, amid the industry downturn.

The layoffs came after an earlier round which saw 18 per cent of its workforce slashed in June. Coinbase had about 4,700 employees as of September. 

The crypto market was hammered by a series of blows last year, wiping out more than a trillion dollars. One of the more serious blows was the collapse of trading platform FTX in November.

Without naming any entity, Coinbase chief executive wrote in a January 10 statement: “In 2022, the crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion.”

The platform will also shut down several projects with a lower probability of success, Armstrong said. The moves were needed to help the platform weather the downturn, he explained.

“In fact, I believe recent events will ultimately end up benefiting Coinbase greatly (a large competitor failing, emerging regulatory clarity, etc.), and they validate our long term strategy. But it will take time for these changes to come to fruition and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge,” he said.