Cryptocurrency exchange company Coinbase Global Inc has announced that it will slash nearly 18% of its workforce which is about 1,100 jobs.
This move has come as a result of reining costs amid volatile cryptocurrency market conditions. The company earlier informed this month that it would extend its hiring freeze for the future and cancel several accepted offers to deal with current macroeconomic conditions.
KBW analyst Kyle Voigt said, “This level of headcount growth over five quarters was too ambitious, especially given that the company has lived through a crypto winter and knows how regularly volatile this market can be.”
The layoffs come a day after Bitcoin fell as much as 14% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers, in the latest sign of the financial market downturn hitting the crypto sphere.
Chief Executive Officer Brian Armstrong said, “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.”
Coinbase last month reported a 35% slump in total revenue to $1.17 billion for the three months ended March 31, missing analyst expectations and weighing on investor sentiment.
