Coinbase is cutting 18% of its workforce: ‘it’s a one-time event’
- Coinbase Global Inc is laying off 1,100 of its full-time employees.
- COO Choi discussed the announcement on CNBC's "Crypto World".
- Shares of the crypto company are down roughly 80% for the year.
Shares of Coinbase Global Inc (NASDAQ: COIN) are in the red on Tuesday after the crypto company said it will cut jobs to minimize costs ahead of a “possible recession”.
1,100 employees to lose their jobs at Coinbase
According to the Nasdaq-listed company, it will lay off 18% of its full-time staff (roughly 1,100 employees). Discussing the announcement on a CNBC interview this morning, COO Emilie Choi said:
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We’re in a rapidly changing economic environment and it feels like the most prudent thing to do right now. But we’ve offered them generous severance packages and built a Coinbase Talent Hub to connect them with their next opportunity.
Coinbase is gasping for air this year as inflation continues to keep the crypto market under pressure. The stock is now down 80% versus the start of 2022.
Coinbase Global can withstand a crypto winter
Despite the sell-off, Choi is convinced the ten-year-old company can weather “any crypto winter” and expects the job cut to be a one-time event. She noted:
We have to adjust when we feel there’s a very dynamic economic environment in play. The decision we have made is in light of all the information we have, and the intention is that this is a one-time event.
In its latest reported quarter, Coinbase Global Inc lost 2.20 million monthly transacting users, resulting in a 27% YoY decline in revenue, as much of its top-line depends on the transaction fees.