Brian Armstrong, CEO of Coinbase, officially announced Tuesday that he has made the difficult decision to downsize the Coinbase team by about 18% due to the onset of the economic recession.
We seem to be entering a recession after 10 years of economic boom,' Armstrong wrote. The recession could lead to another crypto winter, and it could go on for a long time.
He added, according to Coin Telegraph, that trading returns have fallen dramatically over the past winters, noting that Coinbase has weathered four major winters since its founding in 2012.
Armstrong also emphasized that the company was growing very, very quickly, with Coinbase having 1,250 employees as of early 2021.
According to the CEO, the team has grown four times in the past 18 months and their staff costs are too high to effectively manage this uncertain market.
According to the announcement, all departing employees will receive support in finding a new job, including at least 14 weeks of separation plus an additional two weeks for each year of employment. After one year.
The additional support includes four months of health insurance in the United States and four months of mental health support globally.
Coinbase, the major US-based cryptocurrency exchange, has cut its staff amid Bitcoin's plunge to a two-year low of around $21,000.< /p>
Coinbase previously announced in May that it would slow down the hiring process and re-evaluate its staffing numbers to ensure it continues to operate as planned.
