The CEO of Coinbase, Brian Armstrong, announced in a public blog post that he has made the difficult choice to reduce their operating costs by around 25%, which entails letting go of about 950 staff.
950 people are laid off by Coinbase
Coinbase also reduced headcount last year as the market started to correct, and in hindsight, could have reduced headcount even more at that time”, the CEO said. He said in a statement that it became clear that Coinbase would need to cut spending to increase their chances of performing well in every scenario when they assessed our 2023 possibilities.
In @brian_armstrong's letter announcing layoffs at Coinbase, what "broader economic downturn" is he referring to?
The unemployment rate is at its lowest level in 50 years.https://t.co/sKkeiOZk9G pic.twitter.com/YElRLo89No
— Joe Weisenthal (@TheStalwart) January 10, 2023
Coinbase offers help to the affected members
A personal account email including more details will be sent to affected team members. In order to help you through this change, Coinbase will be offering a complete package. This includes health insurance and other benefits, a minimum of 14 weeks of base pay for those who belong in the US, and two more weeks of salary for each subsequent year worked. For impacted workers with work visas, company will also offer further transition support.
Coinbase is looking forward to 2023 opportunities
The business anticipates recording restructuring charges of between $149 million and $163 million. By the end of the second quarter, the overhaul will be “largely complete,” according to a statement. As a result, adjusted EBITDA for the entire year ended December 31 is anticipated to be within its expectations, at roughly negative $500 million.
Coinbase is imposing yet another round of cuts as a result of the persistently low trading volume, particularly in the aftermath of the FTX debacle.