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Coinbase to Slash 20% of Workforce and Abandon ‘Several Projects’

Cory Russell

Jan 11, 2023 14:30

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When Coinbase said on Tuesday that it is laying off nearly a fifth of its workers in an effort to save funds amid the current bear market in cryptocurrencies, the cryptocurrency sector received more bad news.


Shares of Coinbase are trading unchanged in the pre-market after rising more than 15% on Monday after experts predicted it would gain from the collapse of FTX.


Coinbase has decided to scale down operations, joining a host of other significant tech companies that have already made this decision after recruiting like crazy during the epidemic. Genesis, Gemini, and Kracken are a few more cryptocurrency companies that have announced similar employment cutbacks.


They join companies like online retailer Amazon, which said this week that it will eliminate 18,000 positions, which is more than the business had anticipated last year. Salesforce also decreased its workforce by more than 7,000 employees, or 10%. In addition, after assuming ownership of Twitter late last year, Elon Musk reduced its employment by nearly 50%. Finally, Meta cut more than 11,000 positions, or 13%, from its staff.

Coinbase wants to cut costs

According to a blog post that was published Tuesday morning, Coinbase stated it will be laying off roughly 950 employees. The exchange, which had around 4,700 workers as of the end of September, had previously reduced 18% of its staff in June, citing the need to control expenses and its "very rapid" growth during the bull market.


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