Coinbase plans to lay off 18% of its employees, CEO Brian Armstrong said Tuesday, marking yet another cryptocurrency exchange that has slashed jobs in recent weeks.
“We appear to be entering a recession after a 10-plus year economic boom,” Armstrong said in a company blog post. “A recession could lead to another crypto winter, and could last for an extended period,” he wrote, referring to a period when cryptocurrency prices fall and stay low for weeks on end.
“In past crypto winters, trading revenue (our largest revenue source) has declined significantly,” Armstrong said in the blog post. “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,” he wrote.
Coinbase’s layoffs comes amid a huge sell-off in the broader cryptocurrency market. Some investors are shying away from risky investments in favor of more stable assets amid deepening economic worries and as the economy grapples with the.
The total market value of cryptocurrencies plunged below $1 trillion on Monday to $983 billion, the first time it has dropped below that mark since January 2021, according to CoinMarketCap.
The most popular cryptocurrencies — including ether, solana and tether — have all lost value in the sell-off, while bitcoin has fallen to its lowest price since December 2020, according to Bloomberg News. Those declines are causing layoffs at Coinbase’s competitors as well.
Crypto.com plans to lay off 260 employees, or 5% of its workforce, company CEO Kris Marszalek said in a tweet Friday. Earlier this month, reported. Crypto platforms Bitso, Buenbit and Mercado Bitcoin have also laid off workers., owned by Winklevoss twins, Cameron and Tyler, said it plans to lay off 10% of its staff, marking the first time the company has ever had to cut jobs, Bloomberg News
This is a breaking news story and will be updated later.