• Coinbase recently announced an 18% staff layoff to preserve cash during the crypto crunch.
• The exchange is reportedly planning a second round of headcount reductions, this time cutting 950 jobs (20%).
• CEO Brian Armstrong said that Coinbase grew too quickly during the bull market and that the exchange should have done more with “perfect hindsight.”
Coinbase, one of the leading American crypto exchanges, recently announced an 18% staff layoff to preserve cash amidst the current crypto downturn. The exchange is reportedly downsizing its workforce by cutting 950 jobs (20%), in an effort to stay afloat and remain competitive.
The move comes after the exchange had already downsized its staff by 18% back in June 2020. As of September 2020, Coinbase had approximately 4,700 employees.
The decision to downsize its staff has been taken to help Coinbase strengthen its financial position. Chief executive officer Brian Armstrong commented on the downsizing, saying that “With perfect hindsight, looking back, we should have done more. The best you can do is react quickly once information becomes available, and that’s what we’re doing in this case.”
Coinbase estimated that the layoff would incur new expenses of up to $163 million for the first quarter. However, the exchange believes that the downsizing and other restructuring measures will help lower the exchange’s expenses in the long run.
Coinbase is not the only crypto exchange to downsize its workforce. Several other exchanges have also cut their staff in an effort to preserve cash during the crypto crunch.
The crypto market downturn has taken a toll on many exchanges, and Coinbase is no exception. The major exchange is doing its best to remain competitive by downsizing and restructuring to preserve its cash. It remains to be seen if the exchange’s efforts will pay off.