Cryptocurrency change Coinbase is the newest tech firm to announce mass layoffs. In an electronic mail to employees on Tuesday, CEO Mind Armstrong mentioned the corporate could be letting 950 staff go because it makes an attempt to “climate downturns within the crypto market.” The e-mail was , and the corporate additionally submitted an 8-K filing with the news.
“The FTX collapse and the ensuing contagion has created a black eye for the trade”
“Whereas it’s at all times painful to half methods with our fellow colleagues, there was no option to scale back our bills considerably sufficient, with out contemplating adjustments to headcount,” Armstrong wrote in his memo. Staff within the US will obtain a minimal of 14 weeks base pay plus two further weeks per 12 months spent on the firm. Affected staff will obtain an electronic mail at this time.
“The FTX collapse and the ensuing contagion has created a black eye for the trade,” Armstrong told CNBC, and advised that extra ache could also be but to come back. “We could not have seen the final of it — there shall be elevated scrutiny on numerous firms within the house to be sure that they’re following the principles… Long run that’s a great factor. However quick time period, there’s nonetheless loads of market worry.”
Coinbase’s layoffs come amidst a broader downturn within the crypto market. The worth of Bitcoin has plummeted in current months, and is down round 58 % over the previous 12 months in line with CNBC. Coinbase’s shares have trended in an identical course since going public in April 2021. Its inventory is buying and selling at below $40, down from a excessive of over $340 in 2021.