Popular cryptocurrency exchange platform Coinbase is set to lay off nearly 950 employees to cut down 25 per cent quarter-on-quarter operating expenditures, co-founder Brian Amstrong said in a blog post.
"As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough without considering changes to headcount," CEO wrote.
“We are also providing extra transition support for impacted employees on a work visa. Those of you outside the US will receive similar support in line with the employment laws of your country,” the blog post added.
Considering the low probability of success, the company will shut down several projects.
Prior to this, it terminated 18 per cent of staff in June 2022. Eight per cent of workers from India were also affected.
The new year 2023 has brought some bad news for the employees working in the global crypto industry. Prior to Coinbase, Genesis Global Trading laid off 30 per cent employees on January Five. Cryptocurrency Silvergate Capital also reduced 200 jobs. Amber Group also terminated 40 per cent of its staff.
The global tech sector faced massive hardships in the year 2022. Nearly 1,50,000 lost jobs. Big tech players like Twitter and Facebook were seen to reduce employee numbers. After the takeover by Elon Musk, Twitter laid off 7,500 employees. Meta also terminated 13 per cent of its employees.