The crypto roller coaster ridecontinues to plummetdownhill fast . Coinbase , one of the tumid cryptocurrency exchange platforms , is laying off 18 % of its faculty , or about 1,100 employees , according to a companySEC filing . The intelligence also came in a letter of the alphabet to staff written by the CEO , Brian Armstrong , andtweeted outon Tuesday .
Armstrong cited looming recession , the on-going crypto crash , and to a fault affirmative increment as the elementary reasons for the employee cuts .
“ As we operate in this highly uncertain geological period in the earthly concern , we want to ensure we can successfully navigate a prolonged downturn . Our team has grown very apace ( > 4x in the preceding 18 calendar month ) and our employee cost are too gamey to effectively wangle this uncertain market . The activity we are take today will allow us to more confidently superintend through this period even if it is sternly prolong , ” the CEO wrote .
Coinbase CEO, Brian Armstrong, has made multiple efforts to try and reassure investors and stakeholders that everything is fine. However, everything is clearly not fine.Photo:PATRICK T. FALLON / Contributor(Getty Images)
Cryptocurrency has beenfaltering for monthsnow , with multiple coin , extend to benchmark Sir David Alexander Cecil Low . Yesterday , Bitcoinfell more than 13%alone , and ethereum more than 17 % .
Coinbase is justone of the multipleother crypto companies that are feeling the hurt , and have enacted layoff so far this week . BlockFi , Gemini , and Crypto.com have also let go of staff , but so far the Coinbase layoffs are the great .
Only a duad of weeks ago , Coinbase had been plan to bring on new hires . But then , they froze lease “ for the foreseeable futurity ” because of the food market conditions . On top of the rent halt , they alsorescinded caper offersfrom people who had already accepted them , but not yet reach their beginning dates .
The company had also recently try tocalm investor fearsabout a possible failure in a shareowner letter . “ We believe these food market conditions are not permanent and we remain focused on the retentive - term , ” that company’sQ2 stockholder letterread . Though , that retentive - condition now does n’t include about 1/5 of the company stave . “ We made these tough decisions to ensure our time to come is vivid , ” wrote Armstrong in today ’s letter declare the layoffs .
The employees let go today will receive a minimum of two week severing , 4 month of COBRA wellness insurance policy if they ’re in the U.S. , and memory access to Talent Hub , an employment and networking military service .
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