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November 14, 2022

Digital Asset Giant Coinbase Reveals New Round of Job Cuts As Crypto Bear Market Intensifies: Report

By Rhodilee Jean Dolor

US-based crypto exchange Coinbase is reportedly laying off another batch of employees as the crypto winter continues to affect the company’s revenue.

According to a new report from Reuters, Coinbase removed over 60 jobs in its recruiting and institutional onboarding teams, marking the second time that the company has cut jobs this year.

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In June, the firm also let go of 18% of its employees. At the time, Coinbase CEO Brian Armstrong said that the company had to part ways with some of its workforce to effectively manage expenses and improve efficiency amid a slower economy.

Coinbase is again downsizing its team as transaction revenue quarter over quarter (Q/Q) plunged by 44% in Q3.

In a letter to shareholders, Coinbase says that headwinds in the crypto market were impacting the firm’s earnings.

“Barring any major changes to the macroeconomic climate, we are preparing for the pressure on transaction revenue to persist into next year.”

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The layoffs come following the sudden collapse of one of Coinbase’s leading rivals, FTX. Sam Bankman-Fried’s firm was the second biggest crypto exchange by volume before its downfall.

Armstrong assured shareholders recently that Coinbase had zero material exposure to FTX, FTX Token (FTT), and Bankman-Fried’s trading arm Alameda Research.

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