Coinbase CEO Brian Armstrong Officially announced on Tuesday, he made the “difficult decision” to cut the size of the Coinbase team by about 18% as the economic recession began.

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“It looks like we are entering a recession after more than 10 years of economic boom. A recession could lead to another crypto winter and could last for an extended period,” Armstrong wrote. He added that trading income has declined significantly during past crypto winters, noting that Coinbase has experienced four major crypto winters since its founding in 2012.

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Armstrong stressed that the firm is growing “too fast,” with Coinbase headcount reaching 1,250 as of early 2021. The team has quadrupled in size in the last 18 months, and staff costs are “too high to effectively manage this volatile market,” the CEO said.

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According to the announcement, all departing employees will receive support in finding a new position, including a minimum of 14 weeks of severance pay, as well as an additional 2 weeks for each year of service in excess of 1 year. Additional support includes four months of health coverage in the US and four months of mental health support worldwide.

The announcement of the mass layoff of Coinbase came shortly after Armstrong tweeted on June 10 to criticize his employees for publicly petitioning to fire some senior Coinbase executives in a vote of no confidence. The petition specifically calls fire COO Emily Choi, product chief Surojit Chatterjee, and chief human resources officer L. J. Brock.

According to the authors of the petition, the Coinbase executive team made decisions that “were not in the best interests of the company, its employees and shareholders.” The complainants claimed that these decisions led to outcomes such as the failure of the Coinbase NFT platform, a toxic workplace culture, apathetic attitudes from senior management, and others.

Major U.S. cryptocurrency exchange Coinbase is cutting headcount as Bitcoin hit its two-year low of around $21,000.

Coinbase before announced in May that it will slow down recruitment and reevaluate headcount to ensure work continues as planned.

By announcing a new mass layoff, Coinbase joins a growing list of firms that have had to cut their staff amid the ongoing bear market, including Gemini founded by the Winklevoss brothers, crypto-friendly trading platform Robinhood, and trading platform BlockFi, which said it is laying down a 20% rebate. employees on Monday.

Crypto.com CEO Chris Marszalek also took to Twitter on Saturday to announce that the Singapore Exchange will lay off 260 workers, or 5% of its workforce.

FTX Won’t Freeze Recruitment Amid Layoffs at Other Crypto Firms, CEO Says

While some crypto companies are increasingly reducing the size of their teams, others continue to look for new talent. Binance, one of the world’s largest cryptocurrency exchanges, is still recruiting with over 2,000 job openings for engineers, product developers, marketing, and business.

“The crypto space is still in its early stages and bull markets tend to be more price conscious while bear markets have more value conscious teams that continue to build the industry. We believe this is a great time to bring in the best talent,” Binance CEO Changpeng Zhao. said.