Another company has conducted a round of layoffs as the threat of a recession puts the economy on high alert.
Coinbase, a cryptocurrency exchange firm, laid off 18% of its staff according to an internal email. Currently, the company has around 5,000 full-time workers, meaning nearly 1,100 employees will be impacted.
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” said Brian Armstrong, CEO of Coinbase. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
Those fired received a message to their personal email informing them of their hiring to avoid anyone making “a rash decision that harmed the business or themselves.”
Former employees will still have access to a talent hub that may help them find new jobs within the cryptocurrency industry.
Earlier this year, the company had plans to hire 2,000 new employees across its design, engineering, and product teams.
However, like many other companies, it soon froze its hiring processes. Armstrong now says that the company overhired and staffing costs have become too high to operate in “this uncertain market.”
Coinbase went public just last April during the cryptomarket boom, but is facing the same fate of others within the industry whose valuations have plummeted in recent months.
