• Coinbase is letting go of 1,000 employees as part of a critical strategy to survive the crypto winter.
• The crypto exchange was founded in 2012 and has survived multiple bear markets before.
• The most significant factor influencing this decision was the collapse of the crypto exchange FTX.
Coinbase, the leading crypto exchange, is cutting its staff by 1,000 employees as part of an effort to survive the prolonged crypto winter. The company’s CEO, Brian Armstrong, announced the decision in an effort to reduce operating expenses by 25%.
The company was founded in 2012 and has been able to survive several bear markets in the past. This time, however, the situation is different. The crypto winter coincides with a macroeconomic downturn, which has caused a massive decrease in the demand for cryptocurrencies.
The most significant factor influencing the decision to lay off employees was the collapse of the crypto exchange FTX. The company filed for bankruptcy in late 2022, and the ripple effect of that collapse is still being felt across the crypto industry. Coinbase is worried that other companies will be affected by the collapse in the coming months and is taking measures to ensure its survival.
The affected teams have already been informed and the company is taking steps to ensure that those affected by the layoffs receive the necessary support. Coinbase is also looking at the long-term prospects of the industry and is already planning for 2023.
Overall, the decision to reduce staff was a difficult one, but it is necessary to ensure that Coinbase can survive the crypto winter. The company will continue to monitor the situation and take necessary steps to ensure its survival.