Further downsizing at Coinbase

As part of its operational planning for 2023, Coinbase will make another massive layoff of 950 of its employees. Coinbase’s CEO has reassured that a smooth career transition will be provided for the laid-off employees. Brian Armstrong does not hide his optimism about the emergence of his company and the cryptocurrency sector.

950 Coinbase workers laid off

The crypto market downturn continues to rattle companies in the sector. As part of the implementation of its 2023 operational plan, exchange Coinbase announced the reduction of its operating expenses by 25 percent. This reduction includes the layoff of 950 workers at the exchange.

I made the difficult decision to reduce our operating expenses by about 25%, which includes laying off about 950 people.

Brian Armstrong

The reduction in Coinbase’s workforce is aimed primarily at projects with a lower probability of success. This decision is justified by the concern to ensure the sustainability of the exchange in the face of any scenario, including a possible extension of the crypto Bear market in 2023.

This is not the first time Coinbase has made a massive layoff in its ranks. Due to the bear market, this exchange had laid off nearly 1160 people in June 2022. Moreover, Coinbase is not the only crypto player to have proceeded to the massive layoff due to in 2022. In fact, 9,564 layoffs were recorded in the crypto sector in 2022 according to a study by The Block Research. Moreover, the crypto sector is far from being the only one affected by the wave of layoffs. In fact, more than 151,600 job cuts took place in the technology industries in 2022.

Coinbase committed to providing a smooth transition for its laid-off workers

A layoff is always a painful social event, and Coinbase is well aware of this. As such, the exchange has taken steps to ensure that the loss of work has the least possible negative impact on employees.

The first measure is to reassure and restore the confidence of the laid-off employees. In his message, the CEO of Coinbase has notably clarified several times that the dismissal does not take into account the efficiency of the agents, but the profitability of the projects they work on. Brian Armstrong further thanked his fired employees for making the crypto more reliable and easy to use.

Secondly, Coinbase has guaranteed financial support to its laid-off workers. To this end, Coinbase announced that they will receive their base salary for at least 14 weeks. During this time, Coinbase will continue to provide its ex-employees with health insurance. Other benefits will be paid to them according to the law in their respective countries.

Finally, Coinbase will help its dismissed employees to find a new job. To this end, the exchange will continue to provide them with free access to its Talent Hub. This should allow them to learn about various job opportunities.

Crypto and Coinbase continue on their way

The decision to downsize could be seen as an indication of Coinbase’s poor financial situation and the questionable profitability of the crypto sector. This is not the case, reassures Brian Armstrong, Coinbase’s CEO. For him, Coinbase and the crypto sector have a bright future ahead.

Speaking of Coinbase, Brian Armstrong makes it known that his company has enough capitalization to continue offering services. Brian Armstrong even tries to positize the unfortunate events experienced in the crypto sector in 2022. For example, the CEO of Coinbase considers the bear market to eliminate malicious players from the sector and the fall of FTX represents one less major competitor.

Despite the bear market and unfortunate events, the future of crypto is bright. As Brian Armstrong says, progress doesn’t always happen in a straight line. Sometimes it feels like two steps forward and one step back. Nevertheless, when the fundamentals are sitting well, as is the case with the crypto sector, there is no reason to fear.