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Coinbase Lays 1,100 Employees

Navigasi - Previously, cryptocurrency exchange Coinbase would cut 18 percent of full-time jobs, according to an email sent to employees on Tuesday, June 14, 2022. Coinbase has about 5,000 full-time workers, meaning an 18 percent reduction would equate to 1,100 people.

Coinbase Lays 1,100 Employees
Coinbase Lays 1,100 Employees

Coinbase CEO Brian Armstrong pointed to the possibility of a recession and the need to manage Coinbase's burn rate and improve efficiency. He also said the company grew "too fast" during a bull market.

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for a long time," Armstrong said in an email quoted from CNBC, Wednesday (15/6/20222).

Armstrong added that the last crypto winter had resulted in a significant decline in trading activity.

"While it is difficult to predict the economy or the market, we always plan for the worst so that we can operate our business through any environment," he said.

Employees crossing the JCI movement screen, Jakarta, Wednesday (3/8/2022). The Composite Stock Price Index (JCI) in trading on the Indonesia Stock Exchange, Wednesday (3/08/2022), closed at the level of 7046.63. JCI rose 58.47 points or 0.0084 percent from the close of trading the previous day.

Coinbase initially said it would stop hiring. Two weeks later, the crypto giant announced they were extending a recruitment freeze to prepare for the future. Earlier this year, Coinbase said it plans to add 2,000 jobs across product, engineering, and design divisions.

“Our employee costs are too high to effectively manage this uncertain market. While we tried our best to get this right, in this case it is now clear to me that we are over-hiring,” said Armstrong.

The news comes during a deep downturn for Coinbase shares. Coinbase went public via live listing last April during a boom in the crypto market and investors clamored for high-growth tech stocks.

Coinbase shares are down 79 percent so far in 2022 and 85 percent from their all-time high. Meanwhile, bitcoin has fallen to close to $22,000 and has lost 53 percent of its value this year.