Faced with a resounding fall in Bitcoin, cryptocurrency trading platform Coinbase announces series of mass layoffs

The cryptocurrency trading platform announced the dismissal of 18% of its workforce amid the inflationary scenario in the United States.

Photo: Leon Neal/Getty Images

San Francisco-based cryptocurrency trading platform Coinbase Inc. announced that it will lay off 1,100 people, equivalent to 18% of its workforceamid the depreciation of Bitcoin and the efforts of the Federal Reserve to counteract inflation in the United States.

Company founder and CEO Brian Armstrong said in a blog post that he came to this decision after having several conversations with his management team. He said that changing economic conditions, cost management of falling markets and company growth “too fast” were some reasons for the cuts.

“In the next hour, each employee will receive an email from Human Resources informing whether or not they are affected by this termination. Each affected employee will receive an invitation to have a direct conversation with the Human Resources specialist and the senior leader of your organization,” he said in the post.

This decision comes after Bitcoin, the main cryptocurrency, plunged on Monday to its lowest level in 18 months. The digital token fell 12% to $23,981the lowest level since December 2020.

The fall of the cryptocurrency is preceded by another disaster registered on May 12, when its value depreciated more than 50% since it touched its historical value of $69,000 dollars in November of last year.
The uncertainty caused by inflation in the United States, which in May touched a record 8.6%, the highest in 40 years, and the decisions of the Federal Reserve to raise interest rates, in an attempt to curb the rise in prices, has pushed several investors to withdraw from cryptocurrencies.

The crypto exchange, which went public last year with share prices touched the $350 mark, has gradually lost momentum and is trading at nearly $52 a sharewith a market capitalization of less than $12 billion.

With the recent decision Coinbase joins other technology companies that are forced to lay off some of their staff, such as Robinhood, Netflix and the Gemini crypto platform.

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