Crypto exchange Coinbase on Tuesday laid off 20 percent of its workforce, or about 950 people, to reduce its operating expenses amid the economic recession fears. Coinbase Co-founder and CEO Brian Armstrong said that as part of this round of headcount reduction, “we will be shutting down several projects where we have a lower probability of success”. Also Read - Gifting cryptocurrency on Diwali? This is how much tax you'll pay
Coinbase lays off 950 employees
The crypto company in June last year eliminated 18 percent of its workforce, or nearly 1,100 people. Also Read - Google, Meta, Apple, Spotify and more: Why tech companies are slowing down hiring
“We also reduced headcount last year as the market started to correct, and in hindsight, we could have cut further at that time,” said the CEO. Also Read - Cryptocurrency-based movies on Netflix, Amazon Prime Video, YouTube and more
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario,” he said in a statement.
And there was no way to reduce our expenses significantly enough, “without considering changes to headcount”.
Armstrong said that some other projects will continue to operate as normal, “just with fewer people on the team”.
Affected team members will receive an email to their personal accounts with more information.
“We will be providing a comprehensive package to support you through this transition. For those of you in the US, this includes a minimum of 14 weeks base pay (2 additional weeks per year worked), health insurance, and other benefits,” said the CEO.
For employees who have a working visa, he assured, “We are also providing extra transition support for impacted employees on a work visa. Those of you outside the US will receive similar support in line with the employment laws of your country.”
Notably, this is the second time that the company is firing people since 2021. In June 2022, it laid off 18 percent of its workforce which included 8 percent of Indian employees. The reason behinf the layoff was “overhiring”.
In addition to this, the company is also giving Talent Hub access to all the fired employees so that they can get the required help to get to their career opportunities.
–With inputs from IANS