The cryptocurrency exchange platform Coinbase announced it will be laying off approximately 18 percent of its workforce following significant declines in crypto markets in recent months.
Coinbase CEO Brian Armstrong pointed to the growing possibility of a recession and a need to increase efficiency as primary reasons for the layoff of over 1000 workers.
“We appear to be entering a recession after a 10-plus year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” Armstrong said in an email. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
A few weeks ago, Coinbase announced plans for a long-term hiring freeze which will last into the “foreseeable future.” This was a drastically different sentiment than earlier this year when Coinbase said it intended to add around 2,000 new jobs.
“Our employee costs are too high to effectively manage this uncertain market,” Armstrong said. “While we tried our best to get this just right, in this case it is now clear to me that we over-hired.”