Coinbase To Reduce Workforce by 18%
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Brian Armstrong Alluded to the Possibility of a Recession
CEO Brian Armstrong alluded to the possibility of a recession and the necessity to control Coinbase's burn rate and boost efficiency. He added that during a bull market, the company grew too quickly. Armstrong said,
Coinbase had previously stated that it was halting hiring. After two weeks, the crypto behemoth said the freeze would be extended for the foreseeable future. Coinbase announced earlier this year that it would be hiring 2,000 people across product, engineering, and design. Coinbase's stock is down 79% this year and 85% from the all-time high. Meanwhile, Bitcoin has dropped to near $22,000 and has lost 53% of its value this year.
It is worth noting that the prolonged bear run has constrained many crypto companies to cut down the number of employees. While Robinhood laid off 9% of its employees in April this year, crypto.com announced yesterday that it would let go 260 employees, who make up 5% of the organization's strength. The latest lay off has made Coinbase one of the many crypto organizations to that have reduced their workforce.