The already dire state of cryptocurrencies worsened after the collapse of giant stock market FTX, with the leading cryptocurrency Bitcoin (BTC) falling to recent lows. Naturally, this situation caused many companies in the sector to be adversely affected, and some even to go bankrupt.
The information received today revealed that Coinbase, one of the largest stock exchanges in the world, will take a step because of this bad course. According to the statements made by CEO Brian Armstrong, the US company plans to lay off a significant portion of its employees. This move has put Coinbase among companies that have recently fired their staff en masse.
950 employees will be laid off
Armstrong announced this development in an email to staff. In the statement, it was stated that 950 people will be fired, which corresponds to 20% of the total number of employees, which is 4750 in total. The company added that the mass layoffs were due to ‘ circumventing the downturn in the cryptocurrency markets’.
Armstrong also said “unscrupulous actors in the industry” are also influencing Coinbase’s cost-cutting efforts, citing FTX founder Sam Bankman-Fried, who has been accused of money laundering and fraud. The 39-year-old businessman also said in his statements: “Although it has always been painful to part ways with our colleagues, there was no way we could adequately reduce our costs without making changes in staffing.”
This is not the first recent layoff from Coinbase. The giant company announced that it had fired around 1,100 employees in order to reduce costs again in the summer months. In addition, 60 employees were laid off in November.
Apart from the crypto sector, similar steps have been coming in recent months due to the ongoing economic uncertainty from other technology states. A few days ago, Amazon announced that it would lay off 18,000 of its employees.
If you are wondering about the companies that have fired their employees en masse recently, you can check out our content below.
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