Just five months ago, Coinbase reduced its workforce by 18%.
Armstrong said Coinbase is unaffected by the collapse of FTX or Alameda Research.
Coinbase’s newest wave of layoffs is an indication that the exchange may still be seeking to reduce expenses in the current crypto bear market. According to Thursday’s report by The Information, more than sixty employees in Coinbase’s recruitment and institutional onboarding divisions will be let go.
Just five months ago, Coinbase reduced its workforce by 18% in anticipation of what it called an “extended crypto winter.” The company had “overhired,” according to CEO Brian Armstrong, and layoffs were necessary. Coinbase put a hold on recruiting in June and withdrew offers to certain applicants who had already started the interview process.
Effects of Current Bear Market
Other people signed up for a database of potential employees that Coinbase created to aid in the employment search. Coinbase seems to be feeling the effects of the current bear market, with quarterly revenue down 28% and trade volumes down 27% in Q3 of this year. In addition, Coinbase’s stock price has fallen by roughly 80% in 2022 and by 27.4% in November alone.
Armstrong has said that Coinbase is unaffected by the collapse of FTX or its sibling business, Alameda Research. Moreover, despite Coinbase’s stock price drop this year, Cathie Wood’s Ark Invest still seems to be interested in buying it. Earlier this week, the company made a $21.4 million stock acquisition of COIN.
Furthermore, also just gone is the exchange’s Chief Product Officer, Surojit Chatterjee, whom it had grabbed from Google three years ago in exchange for a whopping $646 million package. According to an SEC filing made by Coinbase, Chatterjee is stepping down from his position as chief executive officer and will instead serve as an adviser to Armstrong until at least February 2023.