Crypto exchanges making hostile decisions of reducing the work force.
As the crypto market is in deep trouble, thanks to the unpredicted market crash last month, the loss of value of cryptocurrencies has led to loss of billions of dollars from the market. As the companies are already losing out a lot of the money, they are implementing the method of reducing workforce to cut costs and save some money to help the market to get back to bullish phenomenon.
As the market extends itself into a phase which is popularly called as a crypto winter, many crypto exchanges are making hostile decisions of reducing the work force by either firing them or rescinding from the job offers provided.
Coinbase lays of 18% of the staff.
In the phase of crypto winter, all the companies dealing in cryptocurrency are facing losses. Coinbase being one of the most popular and the largest crypto exchange is surely facing the heat. To counter the pressure of the market, Coinbase has made the decision of laying of at least 18% of the staff, according to the reports.
Brian Armstrong, the CEO of Coinbase says that, the costs are running too high for the company, is proving to be a hinderance for the company to run effectively in such uncertain markets. He also quoted, “We appear to be entering a recession after 10+ year economic boom.” He suggested that, this recession could lead to a prolonged crypto winter, and reduce the trading revenue significantly.
The biggest crypto exchange’s struggle.
Even though Coinbase happens to be the biggest crypto exchange, the company is certainly in a soup to handle the users and investors in the market. The volatility of the market has proven to be the undoing of the company. The decrease in the value and price of cryptocurrencies has also influenced the stocks of the company, which are also experiencing a fall.
The petition by an employee sparking internal rift.
Recently, an employee of Coinbase signed a petition against the top officials in the management hierarchy of the company. Even though the petition was soon deleted, the action of the employee did not go down well with Brian Armstrong. He went on to tweet that, “If you have no confidence in the executives or the CEO of the company, then why are you working the company? Quit and find a company to work that you believe in.” According to the reports, Coinbase is expected to lay off 5000 employees on the whole and the company also promises to pay 14 weeks of severance pay to the laid-off employees.