Coinbase CEO Brian Armstrong officially announced that the company would be cutting off its operating expenses which will result in the layoff of around 950 employees.
Armstrong expressed that the decision in question comes amid a downturn in the market as well as the fallout from unscrupulous actors in the industry in the official blog article.
Despite the market conditions, Brian Armstrong emphasized that Coinbase is “well-capitalized” and that they believe recent events will ultimately “benefit the company in the long term.”
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The CEO acknowledged that some of the factors that led to the layoffs were out of the company's control but that accountability rests with him as CEO. He also mentioned that the company reduced its headcount last year, but in hindsight, they could have cut further at that time.
Following that, Armstrong also stated:
“…we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge.”
The official statement emphasized that all impacted team members would be informed by the end of the day of the announcement was written. The report continues to ensure that the company will be providing support for those affected by the layoffs, including severance packages and assistance with finding new employment.
The first wave of layoffs occurred in June 2022. The company reduced its headcount by 18%, reasoned to the ongoing economic recession.
In other Coinbase news, the company was fined $50 million due to violating New York financial and service laws.