As recently as last year, major cryptocurrency exchange Coinbase was executing plans for a major expansion, announcing that it was adding 2,000 jobs to its workforce in 2022. Like other fintech companies of all sizes, those plans were hastily scuttled by the summer, and Coinbase ended up cutting its team by 4,700 to bring its operating costs down.
Just six months later, Coinbase is now announcing another reduction in its workforce. According to a release by the company in early January, it will be laying off an additional 950 employees, slashing its workforce by another 20%. In an interview on the layoffs, Chief Executive Officer Brian Armstrong positioned the move as a necessary step amid difficult times.
“The FTX collapse and the resulting contagion has created a black eye for the industry,” said Armstrong. Worse, he added, “We may not have seen the last of it — there will be increased scrutiny on various companies in the space to make sure that they’re following the rules. Long term that’s a good thing. But short term, there’s still a lot of market fear.”