Reports Layoffs: Crypto Winter and FTX Crash Leave No Choice

The platform followed the example of its colleagues and announced a reduction in staff. Layoffs will affect 20% of the company’s employees.

In a letter that was sent to employees and posted on social media, co-founder and CEO Kris Marszalek toldthat the decision was influenced by several factors, including current economic difficulties and unforeseen developments in the industry.

“In early 2022, we expanded ambitiously, building on our incredible potential and focusing on the trajectory of the entire industry. This trajectory has changed rapidly as a result of a confluence of negative economic events,” Marszalek wrote.

The layoffs in July helped weather the aftermath of the spring market crash. But the collapse of FTX again made another adjustment to the company’s plans.

Despite the grim news, Marszalek is optimistic about the company’s crypto future and is excited to be able to lead the remaining team: “We have an important year ahead of us as we continue to help restore confidence in our industry and promote our services around the world. I am confident in our ability to develop and lead the market, and I am grateful to be working with all of you.”

On Monday, Coinbase CEO Brian Armstrong announced that his company plans to cut its costs by 25% by laying off 20% of its staff.

Armstrong stressed that Coinbase is firmly on its feet and cryptocurrencies are “not going anywhere,” but the firm must continue layoffs to maintain “proper operational efficiency.” Coinbase will shut down several failed projects, the CEO noted. However, layoffs are not cheap entertainment. The company will spend at least $149 million on severance pay and other benefits.

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