The announcement comes just a week after the Coinbase is an American company that operates a cryptocurrency exchange platform. to lay off some 1,100 workers, a measure implemented to ensure the continuity of its business operations.
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- Coinbase podría despedir más trabajadores de ser necesario.
- Although the measure is on the table, the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. hopes not to have to resort to it.
- Winter crypto winter has created a very difficult environment for Coinbase.
- Other exchanges have also laid off workers in the wake of the market an area or arena, online or offline, in which commercial dealings are conducted. downturn.
The policy director for Coinbase, Faryar Shirzad, revealed that the exchange may opt to further cut its staff because of the current crypto market conditions.
Coinbase could see more layoffs
This was revealed by Shirzad in an interview with the media outlet Financial Times, in which he assured that the measure would be on the table but do not see the need to do so at this time. The executive of Coinbase indicated that this is part of a set of alternatives contemplated by the exchange to ensure the optimal continuity of its operations.
The announcement comes just a week after the Coinbase announced the dismissal of at least 1,1000 workers from its team, in addition to the suspension of new job offers and a freeze on hiring that was underway. In this regard, the company’s CEO, Brian Armstrong, indicated that the market downturn threatens a possible recession for the crypto ecosystem, and that this is one of the mechanisms that has allowed the company to survive other crypto winters seen in previous years.
On the current market conditions, Shirzad said that the company is operating in a “very, very difficult environment.” but with these measures it expects to be able to meet the forecasts presented for the second quarter of this year.
Regarding reports of complaints from the workers of Coinbase In the face of the layoffs, Shirzad said:
“If people aren’t happy at the company, obviously they have the option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. to raise any particular concerns they have… But also, if they don’t feel like it’s the right fit for them, then, you know, there are plenty of other places they can take their talents as well.”
Companies lay off workers because of the cold winter
Let us keep in mind that Coinbase was not the only exchange to announce layoffs due to the effects of the market downturn.
Other reputable platforms such as Gemini, Crypto.com y BlockFi announced in recent weeks that they have made staff layoffs in order to sustain their operations, reducing their team by 10%, 5% and 20% respectively.
However, this does not appear to be the case for Binance yRipple, companies whose CEOs recently indicated that they had taken measures contemplating a possible crypto winter for these times, so they will not opt to lay off workers and will continue to run their operations as normally as possible.
In the case of Coinbase, the fall of the crypto market had a very negative impact on its business activities. At the trading level, the company indicated that it had losses of USD $429.7 million during the first quarter of 2022, while its stock price on the exchange fell to about USD $51 per unit.
- Coinbase lays off 1,100 employees, 18% of its workforce
- Coinbase becomes the first crypto company on the Fortune 500 list
- Coinbase’s quarterly balance sheet reflects notable losses compared to earnings recorded at the close refers to the closing price; similar to the same term used in stock trading. of 2021
Source:Beincrypto, Financial Times
Version by Angel Di Matteo / DiarioBitcoin
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