Crypto exchange Coinbase is laying off 18 percent of its workforce

Just four months ago, Coinbase reportedly spent $14 million on a Super Bowl ad consisting almost entirely of a colorful QR code that bounces around a screen, directing viewers to a website where they can earn $15 in Bitcoin by simply signing up. Now, its fortunes have turned so sharply that it will lay off about 1,100 employees, or 18 percent of its workforce, according to a filing with the US Securities and Exchange Commission.

In a post on the company’s blog, Coinbase CEO Brian Armstrong initially blamed shifting economic conditions that could lead to a “crypto winter” and waited until the third point to suggest the company had “hired too much,” citing its attempt to take action. Leveraging “new crypto-enabled use cases that are gaining traction practically every week.”

four days ago, Ward Armstrong on Twitter To an employee petition calling for the removal of Coinbase executives, calling them “really stupid on multiple levels” and encouraging employees who are unhappy with the situation or proposed solutions to resign.

The employee petition cited issues not as stupid as Armstrong claimed, calling on the company to “recruit aggressively for thousands of roles, despite the fact that it is an unsustainable plan and goes against the wisdom of the crypto industry.” He did not mention the Super Bowl promotion, but did note the excessive prioritization of some projects. This starts with the Coinbase NFT platform which launched with what appears to be a very bad timing given the low activity in the market as a whole which is failing to catch up with the people who are trading in digital tokens.

in May, The Wall Street Journal It reported that company executives, including Armstrong, fellow co-founder Fred Ehrsam, President and Chief Operating Officer Emilie Choi, and CPO Surojit Chatterjee have generated $1.2 billion in stock sales since Coinbase’s initial public offering in April 2021. The company’s shares opened at a price $382 and is currently trading at around $52.

This reduction in staffing comes after Coinbase began canceling job offers that had already been accepted by candidates. The sudden change even left some visa holders in limbo as well as others who bypassed other opportunities or arranged to leave their previous jobs. In yesterday’s report, motherboards Counted more than 300 people had their shows cancelled.

Other crypto companies such as BlockFi, and Gemini have also announced layoffs recently after Bitcoin’s price plunged in each of the past 12 weeks and is now around $21,884 after peaking at around $69,000 last November.

“In the next hour, each employee will receive an email from Human Resources letting you know whether or not you have been affected by this layoff,” Armstrong says in the blog post. Those who are let go will get at least 14 weeks of termination plus two extra weeks for each year of work after their first job – plus four months of COBRA health insurance in the US and four months of mental health support globally plus access To a talent center that is supposed to try to help them find new jobs.

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