2022 wasn’t a good year for crypto.
The bankruptcies, the fall of scandalous firms, and the ruthless crypto contagion rattled the market.
Meanwhile, the macroeconomic conditions were also hostile.
It comprises a fifth of the company’s workforce, but why is Coinbase cutting so many roles?
Why Is Coinbase Laying Off Hundreds of Employees?
Coinbase Global Inc. laid out a restructuring plan to negate the effect of the crypto crisis.
The plan included lay-offs in several phases to control expenses.
Previously, in June 2022, it laid off over 1,100 employees and then 60 employees in November.
The company has taken these measures to slash around 25% of its quarterly expenditures.
In 2022, a prolonged chain of events stopped bullish trends from taking over.
In addition, the tightening monetary policy, interest rate hikes, and overall macroeconomy have not been favorable.
In this scenario, Coinbase wasn’t the only firm to feel burnt.
Various other firms have already taken the step in 2023.
Also,WSJ reporteda 30% cut in Genesis Trading’s workforce.
On the other hand, most crypto assets struggled throughout 2022.
Both BTC and ETH shed over 70% of their all-time high values attained in November 2021.
It translated into higher fear among investors and an aggravating crypto crisis.
However, he believes that “crypto isn’t going anywhere.”
Moreover, he stated that Coinbase is “well capitalized” and has experience surviving bear markets.
Armstrong hopes Coinbase can navigate through this winter by focusing on operational efficiency.
