Coinbase is cutting about a fifth of its workforce in its second round of significant job cuts.
- Crypto exchange platform Coinbase is cutting around 20% of its employees as it looks to save funds amid the current crypto slump.
- The platform says it plans to cut about 950 employees after already cutting around 18% of its workforce in June of 2022.
- Coinbase CEO Brian Armstrong says the crypto sector has been facing immense pressure after the fall of FTX, and the company will have to hold on to every dollar to beat this slump.
Why it’s news
Crypto exchange, Coinbase announces its second major round of job cuts planning to cut 20% of its current workforce.
The exchange had around 4,700 employees as of the end of September after cutting 18% of its workers in June and is now planning to drop 950 employees to save money during the current crypto downturn.
After dropping employee numbers and taking other measures to restructure the company, operating expenses will be down by 25% for the quarter ending in March, according to a regulatory filing.
Coinbase CEO Brian Armstrong says the crypto sector has been facing pressure after the collapse of FTX, which caused mass crypto contagion leading to a slump across most crypto platforms.
Armstrong says the only possible way to survive during this crypto downturn was to let go of many employees.
“We may not have seen the last of it—there will be increased scrutiny on various companies in the space to ensure that they’re following the rules,” says Armstrong. “Long term, that’s a good thing. But short term, there’s still a lot of market fear.”