Cryptocurrency exchange Coinbase Global Inc. will cut nearly 1,100 jobs, or 18% of its workforce, on Tuesday, cryptocurrency exchange said, the latest the company is preparing to ride out the downturn in the cryptosphere.
The cryptocurrency market has been hit by extreme volatility as investors abandon riskier assets fearing that higher inflation readings will force the US Federal Reserve to be more aggressive in raising interest rates and propelling the economy into recession. Will do
Chief Executive Officer Brian Armstrong said in a blogpost, “It looks like we are entering a recession after a 10+ year economic boom. The recession could lead to another crypto winter, and could last an extended period of time.” Is.”
Bitcoin, the world’s largest cryptocurrency, fell as much as 14% on Monday after cryptocurrency lender Celsius Network halted withdrawals and transfers.
Armstrong said employees will receive an email informing them if they have been affected, without giving further details.
Coinbase said earlier this month that it would extend the hiring freeze and cancel a number of accepted offers to deal with current macroeconomic conditions.
Shares of the company fell about 5% in early trading, which is set for their nearly 80% drop this year.
The crypto market slump has forced companies like BlockFi and Crypto.com to cut hundreds of jobs, while top firms including Meta Platforms and Intel Corp have also put the brakes on hiring.
Coinbase had accelerated hiring when the crypto market touched new highs during the pandemic, with headcount increasing nearly fourfold in just five quarters.
KBW analyst Kyle Voigt said in a note to clients on Monday, “This level of headcount growth over five quarters was very ambitious, especially considering that the company lives through a crypto winter and knows how much of this market is going to be. The routine can be unsettling.”
Coinbase is expected to spend approximately $40 million to $45 million in total restructuring expenses, primarily related to employee severance and other termination benefits.