Coinbase is laying off 18% of its workforce as of Tuesday. With the crypto market down, the company will cut 1,100 to 5,000 employees by June 30.
“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. In past crypto winters, trading revenue (our largest revenue source) has declined significantly,” Coinbase Founder and CEO Brian Armstrong said while announcing layoffs.
“We grew too quickly,” he added.
Coinbase is not the only one. Blockfi and Crypto.com also announced layoffs. BlockFi announced it would lay off 20% of its workforce, while Crypto.com said it would lay off only 5%.
According to Coinbase’s filing, the layoffs will “incur approximately $40 million to $45 million” in restructuring expenses.
“Coinbase has survived through four major crypto winters, and we’ve created long-term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset,” Armstrong said.