Crypto trader Coinbase has announced job cuts affecting nearly 950 employees, as the crypto market continues to fall.
This is the crypto trading platform’s third round of layoffs which will hit 20 percent of its workforce.
Themove follows more cuts carried out in June when it slashed 1,100 roles, around a fifth of its workforce.
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In a memo, Coinbase CEO Brian Armstrong said “in hindsight, we could have cut further” in the reductions announced last year.
He also indicated that the collapse of FTX, which caused havoc in the crypto market, affected Coinbase.
He said: “In 2022, the crypto market trended downwards along with the broader macroeconomy.
“We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion.”
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The crypto collapse has put a strain on firms such as Coinbase, which went public in 2021 and expanded fast during the pandemic.
But now Bitcoin’s price has plunged by more than 70 percent from its peak in 2021.
Amazon, Meta, and Salesforce are among the tech giants that have recently announced job cuts.
Many companies, like Coinbase, claim that they went through a hiring spree during the early phases of the pandemic.
Higher interest rates, ongoing inflation, and other factors that have slowed the economy since then have led many executives to reconsider their plans.
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Coinbase said the recent layoffs were part of a 25 percent cost-cutting plan for this quarter.
Staff cuts would cost the firm between $149 million and $163 million.
It is offering a minimum of 14 weeks of basic pay, health insurance, and support in finding new jobs for those who were let go.
Mr. Armstrong said some of the recent changes in the crypto industry, like the decline of what he described as “a large competitor,” could “end up benefiting Coinbase greatly.”
Source: The New York Times
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