Amidst prevailing bear market, popular crypto exchange, Coinbase, has resolved to kick the ball of 2023 rolling by laying off another 20% of its workforce. The layoff resolution manifested in a blog post addressed to the employees by the CEO of the exchange, Brian Armstrong. This development thus means not less than 950 employees of the firm would be affected.
In the blog post, Coinbase CEO maintained that the exchange took the tough decision to cut its operating costs by 25%. Armstrong believes it is only through the layoffs that the notable exchange can forge ahead amidst the downturns occasioned by crypto winter. Armstrong announced the resolution of the firm to aid all affected employees. According to him, the exchange has devised a comprehensive package to support them.
Highlighting the details of the package, he affirms the ongoing plans by Coinbase to pay a minimum of 14 weeks base pay (2 additional weeks per year worked) to affected employees in the US. Further, the CEO said the exchange plans to also offer health benefits to affected employees. Additionally, the firm intends to avail extra transition support for every affected employee on work visa. According to the exchange, it seeks to give those outside the US similar support in line with their country’s laws.
Coinbase to shut down projects with lesser probability of success – Armstrong
Armstrong, however, insisted that Coinbase seems “well capitalized.” But he noted that the layoffs is inevitable for the firm so as to keep the “appropriate operational efficiency.” Beyond the layoffs, the CEO also announced the plans of the firm to shut down its projects with lesser probability of success. Although, as of press time, Armstrong is yet to specify the projects that will be affected by the decision.
The Coinbase CEO, however, expresses optimism about the current trends in the industry. He lauded the growing regulatory clarity rocking the sphere, stressing that such development tends to benefit the exchange. Further, Armstrong believes the failure of FTX has also paved way for wider opportunities for Coinbase.
Meanwhile, he noted that such changes take time to come into fruition. The Coinbase CEO encourages all actors in the industry to create appropriate operational efficiency to weather downturns in the crypto market and capture emerging opportunities.
Worthy of note that this latest layoffs by Coinbase comes barely six months after it dismissed 18% of its workforce. Recall that the layoff manifested shortly after the industry plunged into a terrible downturn. Then, the exchange also initiated several relief packages for the affected employees.