Following actions taken by other exchanges, Coinbase will reduce its workforce by about 18% as part of a cost-cutting plan.
- Coinbase to cut 18% of its staff
- 1,100 employees will leave and about 5,000 will remain in the exchange.
- Company claims recession after 10-year economic boom
This last month has hit the economy in general very hard, but the crypto sector has been especially affected, as the economic crisis has been joined by the specific ecosystem of cryptocurrencies. This has led to the fact that in recent weeks several exchanges have reported that they have been forced to reduce their employees, including Latin American exchanges. Bitso, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Marketplace , Buenbit. In addition, Gemini laid off 10% of its staff at the start of June . Yesterday they joined in, too, Blockfi y Crypto.com.
Now the most recognized American exchange has joined this collapse, Coinbase, which reported that it will lay off 1,100 employees as part of a cost-cutting plan, the company said in a filing to the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) .
The plan involves reducing the workforce by about 18% as of June 10 after which it would have about 5,000 total employees by the end of the current quarter, the company said, adding that it expects the plan to be executed by the end of this quarter.
This is an excerpt from the report released by the SEC:
“El 14 de junio de 2022, Coinbase is an American company that operates a cryptocurrency exchange platform. Global, Inc. (la “Compañía”) anunció un plan de reestructuración (el “Plan”) para administrar sus gastos operativos en respuesta a las condiciones actuales del mercado y los esfuerzos continuos de priorización comercial. El Plan implica una reducción de la fuerza laboral de la Compañía en aproximadamente 1.100 empleados, lo que representa aproximadamente el 18 % de la fuerza laboral global de la Compañía al 10 de junio de 2022, luego de lo cual la Compañía espera tener aproximadamente 5.000 empleados en total al final de su trimestre fiscal actual el 30 de junio de 2022. La Compañía espera que la ejecución del Plan esté sustancialmente completa en el segundo trimestre de 2022″.
The document goes on to say:
“En relación con estas acciones, la Compañía estima que incurrirá en aproximadamente USD $ 40 millones a $ 45 millones en gastos de reestructuración totales, todos los cuales son gastos futuros basados en efectivo y sustancialmente todos los cuales están relacionados con indemnizaciones por despido de empleados y otros beneficios por terminación. La Compañía espera reconocer sustancialmente todos estos cargos en el segundo trimestre de 2022. Los montos estimados anteriores no incluyen ningún cargo que no sea en efectivo asociado con la compensación basada en acciones. La Compañía espera reconocer una reducción inmaterial de la compensación basada en acciones, ya que no prevé modificar materialmente las adjudicaciones de acciones de los empleados afectados para acelerar el otorgamiento de dichas adjudicaciones o para modificar dichas adjudicaciones de una manera que resulte en dichos cargos”.
The CEO of Coinbase Brian Armstrong, posted a note that was shared with all employees this morning.
“We seem to be entering a recession after an economic boom of more than 10 years.” Armstrong said before hinting at the potential for another crypto-winter.
The note acknowledges that the company “grew up too fast” in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. market, growing from 1,250 employees in early 2021.
Outgoing employees of Coinbase received the news on their personal email addresses after access to the Coinbase, according to the note.
Armstrong, moreover, tweeted:
Today I shared that I made the difficult decision to reduce the size of our team at Coinbase by approximately 18%. The broader market an area or arena, online or offline, in which commercial dealings are conducted. downturn means we need to be more cost conscious as we head into a potential recession.
1/ Today I shared that I’ve made the difficult decision to reduce the size of our team at Coinbase by about 18%. The broader market downturn means that we need to be more mindful of costs as we head into a potential recession.
— Brian Armstrong – barmstrong.eth (@brian_armstrong)June 14, 2022
He added: “We also grew quite fast in the last two years and started to operate less efficiently with our new size. It will take us some time to adjust to this new scale before we grow again.” He also asserted: “We have implemented some key programs to try to minimize the impact on our affected employees.”
It’s worth noting, as we’ve said, that the crypto market is in serious decline, starting with Bitcoin, whose price is down 68% from its highest price, achieved in November 2021 when it almost reached USD $69,000.
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