- After laying off 18% of its employees in June, Coinbase to lay off 20% of its employees this year.
- Brian Armstrong co-founder of Coinbase shared views about the reduction in workforce in an official blog.
Coinbase is a crypto platform that is mostly operated through remote work and is about to lay off almost 950 employees to reduce their expenses by January 10. Coinbase is a company founded in 2012 by Brian Armstrong and Fred Ehrsam.
The co-founder of the company said that the company overhired and hence had to lay off 18% of its employees of which 8% were from India. Coinbase has further announced plans of laying off employees to cut its operating expenses by 25% every quarter, expressing his concerns in the blog post.
The official blog post read, “As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.” In Armstrong’s words.
It has been decided to compensate the employees who have been informed on January 10 about the layoff with a comprehensive package to support them through the transition, further the employees working in the US market will have a minimum of 14 weeks of base pay, health insurance, and other benefits.
In 2020 during the pandemic, the company announced it was shifting completely remote and will no longer have any headquarter. They overhired in the process and now are bidding employees goodbye to secure its expenses.
