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Coinbase Lays Off About 18% of its Staffs Amidst Prolonged Crypto Winter

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American-based crypto exchange Coinbase has just announced the retrenchment of about 18% of its staff in anticipation of prolonged crypto winter. According to the statement issued by the company CEO, Brian Armstrong, the new development saw that the affected employees are immediately exited from the company’s database.

The current trend of the crypto ecosystem which has witnessed the steady fall of Bitcoin (BTC) and other digital currencies is now being aggravated. The new development continues to ravage the cryptocurrency marketplace despite various measures to revive it.

Virtual assets service providers as well exchanges have seen their sales volumes lopsided. The firms have now been adopting measures to salvage the situation and keep business running.

In the statement issued by Brian, he noted that the persistent negative decline of the crypto market forecasts continuity in the same trend. The recent development has made the firm incur costs more than it projected.

A huge part of the spending cost incurred by the company has been geared towards retaining its staff. The workforce which the CEO now perceives to be too much to cater for. While the company was well known for constantly increasing its manpower, the recent trends of the crypto ecosystem has now changed the narrative.

The crypto exchange will now focus on accurately cutting down on its expenses and increasing its efficiency with the manpower left.

The affected employees will be entitled to at least “14 weeks of severance plus an additional 2 weeks for every year of employment beyond 1 year,” the CEO said. They also will have free access to the Talent Hub of the firm, where new job opportunities can be secured over time.

Brian takes full responsibility for the decision that the firm has now made despite its swiftness. He however noted that a group of his executives was consulted before this decision was reached.

Coinbase at the beginning of this year had a robust hiring plan. The firm had planned to add 2000 individuals to its workforce strength. However, the huge decline in the crypto market has changed the narrative.

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