To download – In 2022, Coinbase had to lay off nearly 18% of its employees when bear markets were in their infancy. The cryptocurrency winter isn’t over yet, and the company has yet to part with some of its workforce this year to secure its future.
Bear Markets and Crypto Failures: Coinbase Fires Nearly 1,000 Employees
In a statement released last week, Coinbase CEO Brian Armstrong announced the dismissal of about 950 people within the company. This measure would aim to reduce the operating expenses of the cryptocurrency exchange 20% approximately, compared to the previous quarter.
To justify the need for this umpteenth reduction in personnel, Brian Armstrong evoked the bearish trend of the crypto markets last year. He was quick to criticize former cryptocurrency giants who went bankrupt, noting that the industry could still experience contagion following the bankruptcy of ” unscrupulous players in the industry “.
In his announcement, Brian Armstrong clarified that these bear markets were accompanied by a “broader economic slowdown” for the first time. Despite this specificity, the CEO of Coin basis indicates that the company must provide a similar answer to the current environment, just as it has in previous crypto winters, which the cryptocurrency exchange has “outgrown”.
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Crypto winter and opportunities: new wave of layoffs to have the necessary resources
In this case, this answer from Coinbase comes from the upside or downside scenarios for the company’s revenue in 2023. It therefore consists of scaling and complete projects, whose probability of success would be relatively lower. However, the press release does not provide an exact list of these projects that will be halted.
The current context therefore continues to negatively affect Coinbase’s performance. However, Brian Armstrong insisted that the company be ” well capitalized”.
The crypto exchange would therefore remain optimistic about the future, but until the situation actually turns to its advantage, it must part ways with a large part of its staff in order to have “ operational efficiency » necessary, to cope with the bear marketand knowing how to “seize the opportunities” that may arise.
Brian Armstrong’s words are consistent with the survey results Coinbase revealed late last year and the cryptocurrency exchange’s predictions for this year. On the one hand, the company has proposed institutional appetite for cryptocurrenciesdespite bear markets. On the other hand, Coinbase shared gloomy predictions for altcoins this year.
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