Coinbase, one of the largest crypto exchanges in America, announced another round of layoffs earlier today. In a blog post, CEO Brian Armstrong stated that the exchange would further cut its total employee strength by 950. Additionally, Armstrong believes there could be more contagion from the fallout of big crypto platforms. He said,
“I’ve made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people(2). All impacted team members will be informed by today.”
Coinbase prioritizing reducing expenses
Notably, the exchange made a similar decision back in November 2022. And, according to the CEO, the latest round would probably not be the last one. In addition, the exchange will also be closing some of its low-succeeding projects. The crypto exchange stated that the details on this would be provided in its 8-K filing and Q4 earnings call.
Moreover, Armstrong stated that this move was necessary to reduce the platform’s expenses given what was ahead for it this year. The CEO further noted that this would “increase our chances of doing well in every scenario.” He said,
“While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.”
The story is still developing.
