Coinbase, one of the world’s leading cryptocurrency exchanges, has let go of 18% of its workforce in the backdrop of losses hitting the digital assets sector. The company has backed its decision by calling it a cost-cutting measure in these ongoing times of the industrial dips.
Brian Armstrong, the CEO of Coinbase, confirmed the announcement just two months after he and some of the senior team members of his team pitched several jobs in India in the month of April.
Over 1000 employees of Coinbase are estimated to be jobless. Employees of the crypto exchange have received emails informing them about their job status. The laid-off team members are being notified in their personal addresses because the company has already cut off their access to the Coinbase systems for them.
Taking full accountability for hiring, Armstrong revealed that the company had onboarded too many members in the recent months, which was now hindering the firm’s efficiency.
Coinbase has claimed that it will offer a severance package, assistance, and health insurance in professional rehabilitation for team members that are being let go.
As of now, the crypto market is struggling to overcome losses due to the US interest rate hikes, the crash of the Celsius and Terra Network, as well as a low-risk appetite from investors in recession-like circumstances.
This week so far, the crypto market has already registered a decline of around 13.74%, dragging the crypto market below the mark of $1 trillion, which would be roughly around INR 78,00655 crore.
In the month of May, Coinbase reported a 44% fall, and the crypto exchange only managed to rope in $1.17 billion in revenue in the first three months of this year.
In a bid to keep their businesses afloat, some other crypto-related firms have also resorted to staff cut-off measures.
Previously, Crypto.com, and BlockFi have announced massive layoffs from their respective companies. Major shifts in the macroeconomic conditions were cited as the reason behind almost 500 people losing their jobs collectively from Crypto.com and BlockFi.
These back-to-back layoffs from the crypto firms have created quite the ripples on the social media channels.
American economist and the millionaire Peter Schiff has also noted that this is likely just the first round of layoffs and a harbinger of many more to come throughout the crypto ecosystem and beyond. Without jobs, many of the #HODLers may be forced to sell their crypto assets.
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