The general manager of The cryptocurrency platform announced in a statement that workers who lose their jobs will receive at least 14 weeks of severance pay and have access to job offers at other companies.
The American cryptocurrency exchange platform Coinbase will reduce its team due to current economic conditions, the company’s CEO and founder, Brian Armstrong, announced Tuesday.
“Today I am making the difficult decision to reduce our team by approximately 18%, to ensure we stay healthy during this economic downturn,” Armstrong wrote in a release posted on the company’s official website. He added that as CEO he took full responsibility for this decision.
The businessman then explained the reasons for the job cuts, one of which is a rapid change in economic conditions. “It looks like we are entering a recession, after an economic ‘boom’ of more than a decade. The recession could lead to another crypto winter, which could last for a long time,” he said, explaining that during crypto winters – prolonged periods of price drop- business income, which is the main source of profit for the company, drops sharply. “While it is difficult to predict the economy or the markets, we always plan for the worst so that we can do business in all conditions,” stated Armstrong.
Furthermore, according to the CEO, the platform team has grown too fast, since over the last 18 months the number of employees, which was 1,250 at the beginning of 2021, has multiplied by more than four times. This has caused an increase in payroll costs, which have become too high to cope with current markets.
Armstrong also noted that the company had already exceeded the limit of new workers that can integrate. “In recent months, the addition of new employees has made us less efficient, and not more. We have been slowed down considerably, due to coordination problems and the difficulty in fully integrating new team members. We believe that the changes that we are currently doing in terms of resources will allow our organization to be more efficient,” he said.
According to the director of Coinbase, employees who lose their jobs will receive at least 14 weeks of compensation and two additional weeks for each year of service in the company, and they will also have access to job offers in other companies.