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While there are major layoffs happening, Faryar Shirzad, the Chief policy officer at Coinbase, revealed that as part of a long-term plan which is to operate the firm responsibly, more job cuts could happen in the future.
A senior executive at Coinbase while at “The Next Web” conference, declared that more job cuts might be on the horizon, however, the officer noted that they don’t anticipate it at this time.
According to a disclosure to the SEC, Coinbase Global, Inc, announced a week ago that they have reduced their staff by around 1100. This was followed by the company declaring a hiring freeze and the job offering rescission. In a blog, CEO Brian Armstrong mentioned that they decided to do layoffs witnessing threats of a recession after a boom that lasted for more than ten years.
Armstrong further notes that the trading revenue has dropped notably in past crypto winters. He also revealed that by spending less, the firm could survive previous crypto winters.
Coinbase further revealed that it suffered a loss of $429.7 million in May while its stock prices dropped to $51 from a peak of $429.54, experienced shortly after its initial public offering in 2021. It is a firm that heavily relies on consumer trading activities. Other leading firms such as Gemini, BlockFi, Crypto.com, and Robinhood Markets too have cut their labor forces.
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Coinbase Cutoffs Its Staff
The crypto market is going through a rough patch as it witnessed over $2 trillion go down the water, with an aggregated market cap of $867 billion at the time of writing.
The layoffs at Coinbase mean that it is among the crypto firms that have to pull their strings amid a difficult phase in the crypto industry after Terra collapse, due to which investors suffered the loss of approx. $40 billion.
Celsius, a crypto lending platform, halted its withdrawal, swaps, and exchanges earlier this month. Following its steps, another crypto lender, Babel Finance stopped withdrawals and suspensions on June 17, 2022.
Even after all this mess and suffering loss in the first quarter, Coinbase is confident it will be able to achieve its second-quarter forecasts. Shirzad shares that even though the company currently is working in a tough environment, the company is taking all the measures in its best interest in the long term.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
