Major crypto exchange Coinbase is reported to be cutting more than 60 employees from its employment and institutional onboarding units.
Coinbase’s most recent round of cutbacks is a mark that the exchange may still be attempting to reduce expenses in the continuing market downturn. Nevertheless, this development barely changes the situation in a week that has been filled with negative events for the crypto industry.
The layoffs at Coinbase also occurred five months after the exchange dismissed 18% of its employees to brace themselves for a potential “extended crypto winter.”
In an earlier interview, CEO Brian Armstrong claimed that Coinbase had “overhired” and had to reduce its employees as a result. In June, Coinbase likewise stopped hiring and revoked employment commitments it had already issued to recruits. Some of these individuals subsequently voiced their outrage online.
Others uploaded their names to a candidate database that Coinbase established in an effort to aid people in finding work at other businesses.
Given that its quarterly earnings dropped by 28% and trade volumes declined 27% in Q3 of this year, Coinbase does seem to be affected by the current bear market. The price of Coinbase’s stock has tumbled by almost 80% this year and 27.4% just this month.
Surojit Chatterjee, the exchange’s chief product officer, just left the company after being lured away from Google three years previously in exchange for a hefty $646 million incentive deal. Based on a Coinbase SEC filing, Chatterjee will serve as Armstrong’s advisor while on leave until at least February 2023.
The good news is that Armstrong has stated Coinbase has no ties to the failing competitor exchange FTX or its sister company Alameda Research.
Despite Coinbase’s stock price falling this year, Cathie Wood’s Ark Invest seems to be interested in the company. Earlier this week, the company bought some COIN tokens for $21.4 million.
