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HomeBusinessCrypto exchange Coinbase cuts workforce by 18 percent - News

Crypto exchange Coinbase cuts workforce by 18 percent – News

Coinbase, one of the major crypto exchanges, has decided to reduce its workforce by 18 percent due to a major decline in the digital assets segment. Headquartered in the US, the firm says that it has taken this step to cut costs in this difficult period of the industry.

The decision is expected to result in layoffs of over 1,000 employees of the exchange. Coinbase has given this information to the employees affected by this via email. Brian Armstrong, chief executive officer of the exchange blog post “The difficult decision has been taken to reduce our team size by about 18 per cent. This will ensure the firm’s position during the economic slowdown,” it said. Taking the responsibility of hiring for the exchange, he said that a lot of people were recruited in the last few months and this is now affecting the efficiency of the firm.

The exchange has claimed to provide severance packages and health insurance to the employees being laid off. Earlier crypto trading and lending platform BlockFi had announced layoffs of around 200 employees and crypto exchange Crypto.com about 260 employees. Both these firms have given similar reasons for reducing the workforce. The market capitalization of crypto has come down to below $1 trillion.

BlockFi CEO Zac Prince and Crypto.com chief Kris Marszalek announced the layoff decision on Twitter. Prince said in a tweet, “Like many tech firms, our firm has been affected by changes in macroeconomic conditions. This has slowed our growth rate. We are costing measures like reducing team size to make profits. reducing it.” He said that in this difficult period, the salary of the executives of the company has also been reduced. Marszalek said that Crypto.com needs to increase profits. They Told, “This means making difficult and urgent decisions to sustain growth over the long term. That’s why the number of employees is being cut by about 260.” The crypto industry has been facing difficulties for the past few months. There are many reasons behind this.

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