Cryptocurrency exchange Coinbase is the latest technology company to announce mass layoffs. In an email to staff on Tuesday, CEO Brain Armstrong said the company would let 950 employees go as it tries to “weather the downturn in the crypto market.” The email was made public on the Coinbase blogand the company also filed an 8-K filing with the news.
“The collapse of FTX and the resulting contagion has left the industry with a black eye”
“While it is always painful to say goodbye to our colleagues, there was no way we could reduce our expenses significantly enough without accounting for changes in the workforce,” Armstrong wrote in his memo. Employees in the US receive a minimum of 14 weeks base salary plus two additional weeks per year with the company. Affected employees will receive an e-mail today.
“The collapse of FTX and the resulting contagion has left the industry with a black eye,” Armstrong said told CNBC, and suggested that there may be more pain to come. “Maybe we haven’t seen the last of it – there will be more scrutiny on different companies in the space to make sure they’re following the rules… In the long run, that’s a good thing. But in the short term, there is still a lot of fear in the market.”
Coinbase’s layoffs come amid a broader downturn in the crypto market. Bitcoin’s value has plummeted in recent months and is down about 58 percent in the past year CNBC. Coinbase shares have moved in a similar direction since going public in April 2021.
