Coinbase Lays Off 18% of Workforce as Executives Prepare for Recession and ‘Crypto Winter’

Coinbase is laying off nearly a fifth of its workforce amid a collapse in its stock and crypto prices. From a report: The cryptocurrency exchange will cut 18% of full-time jobs, according to an email sent to employees Tuesday morning.

Coinbase has roughly 5,000 full-time workers, translating to a headcount reduction of around 1,100 people. Shares of Coinbase are down about 7% premarket. CEO Brian Armstrong pointed to a possible recession, and a need to manage Coinbase’s burn rate and increase efficiency. He also said the company grew “too quickly” during a bull market. “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,” Armstrong said, adding that past crypto winters have resulted in a significant decline in trading activity. “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.” Coinbase had initially said it was pausing hiring. Two weeks later, the crypto giant announced that it was extending the freeze for the “foreseeable future.” Earlier this year, Coinbase said it planned to add 2,000 jobs across product, engineering and design. Further reading: Coinbase Leaders Net $1.2 Billion in Share Sales.