Coinbase to Lay off Staff Citing Possible Economic Recession

Coinbase to Lay off Staff

Cryptocurrency exchange Coinbase has announced that it will reduce its staff members by 18% due to a potential economic recession.

The exchange’s CEO Brian Armstrong says that the market outlook points to a recession after a more than 10 years economic boom. He added that the trend could cause a crypto winter.

Armstrong says that the trading revenues notably reduced in the past crypto winters. The executive notes that his company has sailed through four such periods since it was founded in 2012.

The CEO announced that the exchange has been expanding too quickly, with the total number of staff reaching 1,250 as early as 2021. 

Armstrong maintains that the number had grown four times in the past 18 months, and the cost of managing the payroll was surging in light of the volatile market.

Coinbase has announced support for the redundant staff, including support to find new jobs, 14 weeks of severance, and two weeks for each year of employment beyond a year. 

The package also includes four months of health insurance in the US and four months of mental health in the global market.

Source: Coinbase

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