The leadership of cryptocurrency exchange Coinbase Global will lay off 20% of its employees (about 950 people) due to the intensification of the crisis in the industry. One of the factors behind this decision was the bankruptcy of another FTX trading platform. informs CNBC TV channel referencing a Coinbase press release.
“In 2022, the crypto market as a whole entered a bearish trend with the macro economy. <….> Therefore, the difficult decision was made to reduce our operating costs by approximately 25%, including the layoffs of approximately 950 jobs. All affected team members will be notified today.
According to Brian Armstrong, CEO of the trading platform, the collapse of the FTX exchange dealt a “severe blow” to the entire cryptocurrency industry. According to the TV channel, as of the end of September 2022, approximately 4.7 thousand people were working at Coinbase Global. At the same time, stock market management laid off 18% of staff last summer due to rising costs.
The article states, “Coinbase said that this move (new mass layoffs – socialbites.ca) will result in new spending from $149 million to $163 million in the first quarter of 2023.”
December 21, CNBC TV channel, citing the source reportedCore Scientific, one of the largest miners in the US, has filed for bankruptcy. The management of a public mining company initiates Chapter 11 bankruptcy protection proceedings against creditors. Core Scientific’s capitalization has now been reduced to $78 million, compared to $4.3 billion as of July 2021. In addition, the company’s shares fell 98% during the year.