Cryptocurrency exchange Coinbase has announced plans to reduce its workforce by around 20%. Besides, The move comes as a result of the “crypto winter” that has been wreaking havoc on the crypto industry for the past several months. Coinbase had resorted to a job cut last year as well when it laid off nearly 1100 employees.
According to the company, the decision to cut staff was made to ensure the long-term success of the business. Coinbase CEO Brian Armstrong said in a blog post that the company had “driven growth aggressively” over the past few years, but that it had now become “clear” that the industry was in a “downturn” and that the company needed to adjust accordingly.
The restructuring is expected to cost between $149 million and $163 million. Armstrong said that the majority of the costs would come in the form of severance packages and other related expenses. He also noted that the company would be offering financial counseling and other support to employees affected by the layoffs.
The move comes shortly after Coinbase announced the termination of its services in 13 countries, citing a lack of demand in those areas. The company also recently ended its services in India, citing a “regulatory environment” that was “not favorable” for the business.
In his post, Armstrong reassured that Coinbase is committed to its mission of democratizing access to financial services, and will continue to invest in new products and services. He also stated that Coinbase is not immune to the challenges in the crypto industry, but is confident that it will emerge from the ‘crypto winter’ in a stronger position.
Coinbase’s recent layoffs are a sign of the difficulties the crypto industry is currently facing. Despite Coinbase’s success in sustaining profitability, other crypto businesses have had to reduce their staff or even close. The future of the industry is uncertain, and it is unclear how many more companies will be impacted by the crypto winter shortly.
