A popular crypto exchange, identified as coinbase recently announced the reduction of its team by about 18%. The crypto exchange made the announcement in a blog post relayed by its CEO, Brian Armstrong on Tuesday. According to him, the decision to layoff some of its staff manifested as a result of the prevailing economic recession.
As it stands, the crypto economy is overtly witnessing another recession after about 10 years of economic prosperity and boom. This recession, tend to give rise to a crypto winter, which appears likely to linger for a long time. According to Armstrong, the popular crypto exchange has endured four crucial crypto winters since its establishment in 2012 and trading remunerations decreased during those times.
In addition, the popular crypto exchange remarked that as of 2021, the exchange witnessed a huge expansion after hiring about 1,250 staff. The CEO stated that the expenditure of managing workers during an uncertain market appears very high and burdensome. This according to him was because the team has risen four times in the last 18months.
Coinbase to compensate dismissed workers with aids
As confirmed by the popular crypto exchange, fired members of the team will receive aid in securing a new position. The aid reportedly entails a minimum of 14weeks of severance. Furthermore, they tend to also get an extra 2weeks for every year of employment beyond 1 year. Coinbase intends to further give four months of health insurance in United States. The laid off staff will also get additional four months of mental health aid globally.
The massive layoff of workers by Coinbase comes days after Armstrong condemned his employee for putting out a public petition. Recall that the staff relayed a petition against some senior executives of the popular crypto exchange. This, however, led to the passage of a vote of no confidence on the involved executives. The request particularly summoned for the dismissal of the Chief Operating Officer, Emilie Choi, Chief product officer, Surojit Chatterjee, and Chief People Officer, LJ Brock.
Furthermore, the petitioner lamented the formulation of unfavorable policies by the Coinbase executive team. This, according to the petitioner led to downfall of Coinbase NFT outlet. The individual also claimed the unfavorable policies aided unhealthy workplace culture in Coinbase.
Coinbase exchange is laying off its staff as Bitcoin hits its lowest within two years around $21,000. Recall the exchange had earlier declared in May that it will lessen its staff intake to ensure it proceeds with operations as scheduled.