Winter for the cryptocurrency industry persists with Coinbase being the latest to downsize its business by cutting nearly 1,000 jobs.
Coinbase – the world’s second largest crypto exchange by trading volume – will cut 950 jobs, or about 20 percent of its workforce as part of broader restructuring plans, according to a blog post by CEO and co-founder Brian Armstrong.
The US-listed firm will also shut down several projects with a lower probability of success.
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, Armstrong said in the post.
This marks the third round of layoffs for the crypto exchange since last year when it slashed 1,100 jobs in June followed by another 60 jobs in November.
Coinbase is well capitalized, and crypto isn’t going anywhere. 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, said Armstrong, referencing the FTX collapse.
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.