Coinbase Global announced on Tuesday that it will fire 18% of its employees as another sign of a worsening cryptocurrency slump that has reduced the market value of cryptocurrencies by hundreds of millions of dollars.
The largest cryptocurrency exchange in the United States follows in the footsteps of other cryptocurrency-related businesses that have recently reduced staff, such as rival exchange Gemini Trust and lender BlockFi. Layoff.
Coinbase, whose CEO is Brian Armstrong, has been actively hired in recent years, with a surge of approximately 1,200 employees this year.
The company has almost dismissed that amount and plans to end this quarter with about 5,000 employees.
Until recently, the company hasn’t acknowledged the arrival of the cryptocurrency winter, despite a decline in stocks since it went public more than a year ago.
According to Bloomberg data, these have decreased by almost 80% to date.
Employees who are dismissed receive a minimum of three and a half months of dismissal, plus two weeks of employment each year.
The cryptocurrency slump began shortly after Bitcoin hit a record high in November.
Earlier this year, the collapse of TerraUSD stablecoin and associated Luna tokens lost billions of market profits.
Coin prices plummeted last week after crypto lender Celsius Network frozen its withdrawal in a run-on-the-bank run of many allegations.