Coinbase CEO Brian Armstrong publicly announced on Tuesday that he had made a “difficult decision” to reduce Coinbase’s size by 18% due to the economic downturn.
“We seem to be heading for a recession after a 10+ year economic upswing. “A recession could lead to another cryptic winter and could last for a long time,” Armstrong wrote. He added that trading revenue had fallen sharply in recent cryptocurrencies, noting that Coinbase has survived four major cryptocurrencies since its inception in 2012.
Armstrong emphasized that the company was growing “too fast”, with Coinbase having 1,250 employees as of the beginning of 2021. According to the CEO, the team has grown four times in the last 18 months and their staff costs are “too high to deliver”. manage this uncertain market. “
According to the announcement, all outgoing employees will receive support in finding a new role, including a minimum of 14 weeks of severance pay in addition to an additional 2 weeks for each year of work in excess of 1 year. Additional support includes four months of health insurance in the United States and four months of mental health assistance worldwide.
Coinbase’s massive redundancy announcement came shortly after Armstrong took to Twitter on June 10 to criticize his staff for issuing a public request to remove some of Coinbase’s senior executives in a no-confidence motion. The petition specifically calls for the removal of Chief Operating Officer Emilie Choi, chief product officer Surojit Chatterjee and chief executive LJ Brock.
According to the authors of the request, the Coinbase board of directors has been making decisions that were “not in the best interests of the company, its employees and its shareholders.” Proponents of her case have been working to make the actual transcript of this statement available online.
The main US cryptocurrency exchange Coinbase is reducing its staff, while Bitcoin has reached a two-year low of $ 21,000.
16 / If you are unhappy with something, work as part of the team to raise it along with the proposed solutions (it’s easy to be critical, harder to be part of the solution). If you can not and you are going to leak / rummage outside, stop them. Thanks!
– Brian Armstrong – barmstrong.eth (@brian_armstrong) June 10, 2022
Coinbase announced earlier in May that it would slow down hiring and re-evaluate its staff to ensure it continues to operate as planned.
When Coinbase announced a new massive layoff, it added a growing list of companies that needed to downsize in the ongoing bear market, including the Winklevoss brothers founded Gemini, the cryptocurrency-friendly Robinhood platform and the BlockFi client platform, which said it was proposing. 20% of its staff on Monday.
Crypto.com CEO Kris Marszalek also took to Twitter on Saturday announce that the Singapore Stock Exchange would lay off 260 employees, or 5% of its workforce.
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While some cryptocurrencies are increasingly reducing the size of their teams, others continue to look for new talent. Binance, one of the world’s largest cryptocurrencies centers, still has a role to play, with more than 2,000 roles open to engineers, product, marketing and business designers.
“The cryptocurrency space is still in its infancy and cattle markets tend to think more about prices while bear markets have more valuable teams that continue to build the industry. We see this as a great time to bring the best talent, “said Changpeng Zhao, CEO of Binance.
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