Coinbase Says It Grew Too Quickly and Now Lays Off 1,100 Employees

cryptonews.com:

Major crypto exchange Coinbase said it will reduce its workforce by around 18% in order to cut expenses and increase efficiency ahead of a possible recession.

According to the report submitted to the US Securities and Exchange Commission, on June 14 this year, Coinbase Global, Inc. announced “a restructuring plan to manage its operating expenses in response to current market conditions and ongoing business prioritization efforts.”

Per the company,

“The Plan involves a reduction of the Company’s workforce by approximately 1,100 employees, representing approximately 18% of the Company’s global workforce as of June 10, 2022, following which the Company expects to have approximately 5,000 total employees as of the end of its current fiscal quarter on June 30, 2022.”

Per Coinbase CEO Brian Armstrong’s announcement, the executive team has reached several conclusions: that the economic conditions are changing rapidly and we seem to be entering a recession; managing costs is critical in down markets; and the company grew too quickly.

Therefore, said he, they reached two decisions as well: the need to manage expenses, and the need to increase efficiency.

The employees would be getting an email telling them that they’ve been fired within an hour from the announcement’s publication. They’d be “departing today” with a minimum of 14 weeks of severance plus an additional 2 weeks for every year of employment beyond 1 year, 4 months of health insurance in the US, 4 months of mental health support, and access to Talent Hub to help them search for new employment.

Coinbase added in the SEC report that they expect the plan’s “execution” to be “substantially complete” already in this second quarter – out of which only half of the month is left.

Ther