Amid the crypto market bloodshed, numerous companies decided to decrease the size of their workforce. Similarly, Coinbase announced that it would reduce the size of the company’s workforce by 18%. Initially, the company announced to slow the hiring process, followed by the decision to rescind multiple employment offers.
The chief executive officer of Coinbase, Brian Armstrong, published a blog post on June 14. The announcement about the blog post was made in a Tweet that said, “Coinbase CEO Brian Armstrong announced today the difficult decision to reduce the size of the Coinbase team by 18%. More details and rationale in Brian’s email to employees, which has been made public for all to see,”
The letter explains the difficult decision to ensure Coinbase remains healthy amid the gruesome crypto bloodshed. The CEO wrote in the blog post that his decision to reduce the size of the team by 18% was to ensure the company stayed healthy during the economic downturn.
Armstrong added that he wants to share why he made the decision but first wants to start by taking accountability for how the company got into such a condition, adding that he is the CEO. The responsibility lies with him and not with someone else.
Armstrong stressed that managing the company’s costs is extremely critical in such a bear market due to the rapid changes in the economic conditions. He also added that the company grew far too quickly. He said afterward that the Human Resources Department (HR) would send all the employees a letter. The letter would inform the employees whether they are affected or unaffected by the massive layoff of 18% of the workforce.
He also stated that the employees that would be laid off, as a result, would get a minimum of 14 weeks of severance pay. Additionally, such employees will also get COBRA health insurance for four months alongside access to Talent Hub.
The decision of Coinbase to cut off its workforce follows a host of other companies that are letting their employees go. It was reported on Monday that Blockfi would be laying off 20% of its workforce. Similarly, the CEO of Crypto.com announced around the same time that the exchange had to lay off 260 employees.
Similarly, numerous other crypto companies such as Rain Financial, 2TM, Buenbit, Gemini, and Bitso have also cut their staff. The decision of Coinbase is also due to the significant drop in the value of the company’s stock. Initially, it was trading for $342 per share. However, COIN is down 85.54% on Tuesday morning and is now trading at $49.35.