According to a spokesperson, the largest United States digital asset trading platform, Coinbase Global Inc (COIN.O), a well known Crypto exchange has laid off 60 jobs in its recruiting and institutional onboarding teams, on Thursday, the most recent in a series of job cuts by the exchange as the long slump of crypto currencies deepens further. This move has taken place at a time when pummeled digital coins risk another contamination in the sector and primary rival FTX inches closer to a collapse.
The job cuts have happened for the second time this year, following a week after “crypto market headwinds” we’re held accountable for a net loss of $544.6 million for company in the three months quarter that ended on Sept. 30 or $2.34 per diluted share, compared to a profit of $406.1 million or $1.62 per diluted share in the previous year.
The transaction revenue dropped 64% from last year to $365.9 million.
In a shareholder letter, the company stated, “Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore.”
The net revenue of the cryptocurrency exchange scaled down by 53.3% year over year at $576.4 million.
Coinbase’s chief financial officer Alesia Haas told Bloomberg TV, “Today’s actions were surgical. We are just making sure we are not wasting a dollar. If we see that there is going to be further depressed revenue, and if we believe this is going to impact beyond the scenarios we have already planned for, we will have to take further cost saving action.”
In the month of June, Coinbase revealed that it would lay off 18 per cent of its employees, the equals to roughly 1,200 in number. Billionaire Michael Novogratz’s Galaxy Digital Holdings said this month that it is exploring the possibility of eliminating around 20 per cent of its workforce. Also over the past month, Mythical Games, a blockchain video game company that was once valued at US$1.25 billion, slacked off 10 per cent of its workforce.
Mr Elliott Suthers, director of corporate and global communications, said that Coinbase will offer “generous severance packages for those affected”.
