Coinbase Announces Layoffs of 1,100 Employees Due to Very Rapid Growth

• – Coinbase, which is known as the major crypto exchange, has announced that it has plans to reduce its workforce by about 18% to reduce expenses and increase productivity before a possible recession, and this is due to rapid growth.
• – There was a report submitted to the US Securities and Exchange Commission. According to this report, on June 14 this year, Coinbase Global, Inc. It also said it will make progress by announcing that it will unveil a restructuring plan to manage operating expenses in response to current market conditions and ongoing business prioritization efforts.

The per-company planned pattern stated that as of June 10, 2022, approximately 1,100 employees, representing approximately 18% of the company’s global workforce, had been laid off. Reducing the company’s workforce is also included in these plans. Following these plans, the Company also plans to have approximately 5,000 total employees by the end of its current fiscal quarter on 30 June 2022.

Also, in the statement made by Coinbase CEO Brian Armstrong, the management team came to a few conclusions. These results are especially the rapid change in economic conditions and the appearance of a recession. This is why managing costs is critical in down markets; because the company has experienced a rapid growth situation. Therefore, two decisions have emerged. These decisions; It is known as the need to manage expenses and the need to increase efficiency.

Employees would encounter situations like receiving an email containing saying they were fired within an hour of posting the announcement. Coinbase has made it clear that they are not updating the outlook given in a letter to shareholders in May. They also stated that as a result of the plan:

The company also explained that it expects the previously provided outlook for the company’s technology and development to remain intact, and also to expect general and administrative expenses for the full year 2022 to be closer to the lower end of the range in the Letter to Shareholder.

As reported in May, with the backlash to the bearish market, the stock market also announced that it has plans to modify and advance its previous expansion plans for this year by creating new jobs. Later, some recruits said that they were also disappointed with the job offers that were canceled.

• – Moreover, according to Armstrong, there was a case recently that allegedly came from one or more Coinbase employees. Accordingly, there was also the case of responding to an online petition calling the management team for numerous errors and demanding the exit of some executives. However, the CEO made some rumors about the anonymous petitioners and also explained their firing status.
• – Meanwhile, Zac Prince, CEO of crypto lender BlockFi, made a statement on Monday. We have a plan to reduce our headcount by roughly 20%, after taking significant time to plan and think, the CEO said in a statement. At the end of 2020, according to the CEO, the company had around 150 employees and has since grown to over 850. Zac Prince also stated that the company affected by changes in macroeconomic conditions has to make choices to manage costs.