Coinbase, one of the world’s largest cryptocurrency trading platforms, plans to lay off around 20% of its workforce. This latest round of layoffs comes less than a year after the company laid off around 150 employees. In a message to employees, CEO and cofounder Brain Armstrong said the layoffs come as the company aims to “weather downturns in the crypto market.” “While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount,” Armstrong said.
Coinbase is planning to let go of 1,100 employees, or approximately 18% of its global workforce. Armstrong in the memo said the company “could have cut further” in last year’s layoffs.
Armstrong said the job cuts are part of a plan to cut Coinbase’s operating expenses by about 25% on a quarter-over-quarter basis. He also said the company will shutdown several projects that have a lower probability of success.
Coinbase is a cryptocurrency exchange platform that allows users to buy, sell and trade cryptocurrency. The company website states that the platform is built to secure digital assets while ensuring that they remain readily available for trading and other services. As of Sept. 30, Coinbase employed about 4,700 full-time workers, down by more than 200 people from the end of the previous quarter.