Coinbase is laying off 1,100 employees amid turmoil in crypto market
India Today
Coinbase said that it is laying off around 18 per cent of its workforce as Bitcoin continues to fall. In a new blog post, CEO Brian Armstrong said that the company "over hired" in 2021.
According to a filing with the US Securities and Exchange Commission, the cryptocurrency exchange Coinbase said that it is laying off around 18 per cent of its workforce as Bitcoin continues to fall. In a new blog post, CEO Brian Armstrong said that the company "over hired" in 2021.
In the blog post, Armstrong first blamed the changing economic conditions that lead to a “crypto winter”. He later said that the company “over-hired” citing that it wanted to take advantage of “new use cases enabled by crypto getting traction practically every week”.
Armstrong further noted in the blog post that “in the next hour every employee will receive an email from HR informing you if you are affected or affected by this layoff.”
He said that those being laid off will get at least 14 weeks of severance plus an additional two weeks for every year of employment after their first. Additionally, these employees will get four months of COBRA health insurance in the US and four months of mental health support globally, plus access to the company’s talent hub that will help them find new jobs.
Recently, Armstrong responded to an employee petition calling for the removal of Coinbase executives, calling it “really dumb on multiple levels”. In the same Twitter post, Armstrong asked employees unhappy with the situation to quit. The employee petition called out the company for “aggressively hiring for thousands of roles, despite the fact that it is an unsustainable plan and is contrary to the wisdom of the crypto industry.”
The layoffs come after Coinbase started rescinding job offers that were already accepted by candidates.Besides Coinbase, the cryptocurrency firms like BlockFi, Crypto.com, and Gemini also announced layoffs after Bitcoin continued to fall.
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