Coinbase CEO Brian Armstrong has announced that roughly 18% of all Global Inc S workforce will be cut off. The evident reason is that Coinbase is making strategies to navigate the crypto winter.
Whereas, Coinbase CEO in early 2021 cited over-hiring for the expansion of the Nasdaq-listed American crypto trading platform.
However, later the economic outlook is not encouraging the business to survive in case the recession is will stay for much longer.
Further, Armstrong stated that the lay of staff is to cut costs and drive improved efficiency across the board.
“As we operate in this highly uncertain period in the world, we want to ensure we can successfully navigate a prolonged downturn,” Armstrong said in the note shared with all of the company’s staff.
Coinbase Woes is Across-the-board!
Coinbase stock is presently trading at $51.86, down from over $300 when it made its debut on the Nasdaq back in April 2021 at the time of scripting.
Furthermore, the hit the company is taking is similar to the other tech firms around the world. Coinbase said it needed to be strategic. The reason why they want to be strategic is that a downtrend will impact its primary revenue source, which is high trading volumes.
In addition, the hints about cutting down on staffing were first given by President Emilie Choi. She unveiled plans to stop absorbing new recruits into the Coinbase workforce.
It is clearly modeled the similar move made by Gemini, which cut back 10% of its employees earlier this month. However, Coinbase promises optimal compensation and support to all affected staff.