Coinbase to Lay Off 18% of Workers

[bitmover]

Coinbase to Lay Off 18% of Workers as Crypto Winter Worsens

    Biggest US crypto exchange joins Gemini, BlockFi in staff cuts
    Company plans to end current quarter with about 5,000 workers

Coinbase Global Inc. announced Tuesday it will lay off 18% of its workforce in another sign of a worsening crypto downturn that’s shaved off hundreds of millions of the total cryptocurrency market value.

The U.S.’s biggest crypto exchange is following in the footsteps of other cryptocurrency-related businesses that have recently cut staff, including rival exchange Gemini Trust Co. and lender BlockFi Inc., both of which cited the arrival of a crypto winter -- a prolonged downturn -- as the reason for the layoffs.
https://www.bloomberg.com/news/articles/2022-06-14/coinbase-to-lay-off-18-of-workers-as-crypto-downturn-worsens

Cryptocurrency related business are clearly having financial problems now. Although there is some spike in trading volume when there is a high volatility,  the bear market is much worse for exchanges than a bull market.

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.

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[DaveF]

So long as they don't fire the 1 person working for customer support.

Makes me wonder how many of these were / are and I don't have an exact way to put this. "Needed layoffs but we didn't have a reason" other then we don't have something for you to do today.
Many companies shrink staff when projects are finished or when growth slows. Tech companies, don't always do this but look for 'a reason' to shrink staffing.

It would be a lot tougher to go to staff last year when BTC & crypto were booming and tell them you are laying people off because they are not needed.
Now with everything plummeting in price and all the losses, it's easier to show people the door.

-Dave

[suchmoon]

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.

NOW you're telling me... I just shoveled more worthless fiat to Coinbase to buy the dip LOL

[Eternad]

Well this is necessary if they really want to survive on this bear season. They have most of there assets in crypto while the profit from fees is on crypto too which is now plummeting non-stop. There are some reports on twitter that Bitcoin withdawal on coinbase has a delay a certain days while withdrawing to bank will take much more longer(can't get anymore the source).

Working on this huge giant company is indeed very scary if you are a regular employee that just want to have a happy job on crypto.

[suchmoon]

Working on this huge giant company is indeed very scary if you are a regular employee that just want to have a happy job on crypto.

A layoff - particularly in an "at-will" technology job - is not something to fear, it's something to expect and be ready for.

On the bright side, there's a new paragraph in the resume for the next job.

[bitmover]

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.

NOW you're telling me... I just shoveled more worthless fiat to Coinbase to buy the dip LOL

Just buy btc and withdrawal it as fast as possible.

As coinbase announced few  time ago, they can take our funds if they are insolvent.

 

A couple of weeks ago, a newly required SEC disclosure we made in our 10Q created some noise about how Coinbase holds crypto assets and what could happen in the highly unlikely event of the company’s insolvency. This led to some genuine concern among people who hold crypto assets on Coinbase.

Even though customer assets have always been protected, we know this was scary — especially in a down market.

https://blog.coinbase.com/setting-the-record-straight-your-funds-are-safe-at-coinbase-and-always-will-be-f8cf2b588fd8

I am afraid of usdc as well, I have some..

[dkbit98]

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.

Crypto winter is coming for sure, and it's never a good idea to hold any coins on centralized exchanges, or in fake dex and in yield earning platforms semi-scams.
I saw this news about Coinbase workers, I also think that Crypto.com also announced something similar, and one Bisq fork dex announced they are stopping development because market crashed
This is more or less expected, and it is not only related with Bitcoin crash, whole economy is like Titanic ship that is currently crashing, and I think this looks like it was intentional plan :/

Crypto.com says it will lay off 260 employees, joining the downsizing wave hitting crypto exchanges
https://www.businessinsider.com/cryptocom-layoffs-260-workers-5-percent-employees-announcement-2022-6

[PX-Z]

This is more or less expected, and it is not only related with Bitcoin crash, whole economy is like Titanic ship that is currently crashing, and I think this looks like it was intentional plan :/

People really didn't expect it will go down til 20k. But after the war broke and sanctions started to put on russia from everywhere, this began, not just crypto but the almost all market are affected.

While in the other hand, it's an opportunity to bought more in this dip.

[RickDeckard]

This is more or less expected, and it is not only related with Bitcoin crash, whole economy is like Titanic ship that is currently crashing, and I think this looks like it was intentional plan :/

What has been happening on the crypto market is a reflection of the financial market in general - the market is in a bear / down trend. Do take in consideration that some events in the crypto world are just pure extreme examples, such as the LUNA event, but indeed these are not easy times for the companies.

Big VC companies, such as Sequoia Capital and YCombinator, already warned[1][2] that they'll reduce the investment frenzy that has been seen in the past years, mostly due to the lackluster behavior of many tech companies in the past months (such as Netflix f.e). Since the business model of these kind of tech companies mostly relies on burning cash fast in order to expand (and then later deal with the pain of growing too quickly), they are now facing a problem where funding is uncertain which makes them having reduce costs in the short therm by mostly cutting jobs (see for example Glovo[3], Klarna[4] or even Netflix[5] (more complete list can be seen here[6])).

If this happens in the tech market, for sure considering the whole crypto market status and especially the way that Crypto.com evolved to the brand that is today (by a mix of really strong advertising (burning huge amounts of money) + their credit card cashback program (now slashed)), this kind of approach is expected. Let's just hope that remaining companies (tech and crypto) are able to sustain current market conditions ...
[1]https://news.crunchbase.com/business/sequoia-warning-founders/
[2]https://news.crunchbase.com/venture/y-combinator-startup-warning-letter-downturn-2022/
[3]https://sifted.eu/articles/glovo-foodpanda-layoffs/
[4]https://techcrunch.com/2022/05/23/klarna-lays-off-10-of-its-workforce/
[5]https://www.bbc.com/news/business-61489041
[6]https://news.crunchbase.com/startups/tech-layoffs-2022/

[uneng]

Dismissals are a common thing in almost every companies of the industry during this weak market due to the volume of money and number of customers decreasing. It's not needed and profitable to keep the same number of employees to attend a reduced number of customers. In my country the same is happening and it's understandable businessmen act like this. Next bull run cycle these businesses start hiring again.

[Darker45]

This is now a bothering pattern among crypto-related companies. Surely, the bear market did not force them to deactivate certain features or pull out certain services from their platforms. But with the laying off of a significant number of workers, it could mean a poorer service.

I'm also thinking of Coinbase's loan from Goldman Sachs. Their Bitcoin collateral must have already fallen from its value and additional collateral must have already been demanded from the exchange.

[o_e_l_e_o]

Laying people off when business isn't doing well is entirely expected as suchmoon has said. However, the circumstances surrounding these lay offs is pretty disgusting, even for Coinbase's already abysmal standards. I'm reading about people who were fired via a text message, people who discovered they were fired when they were simply kicked out of their remote systems while in the middle of working on something, even someone who took out a work visa and had his job offered rescinded, meaning he is being kicked out the country. We know Coinbase have a complete disregard for their customers, but looks like they have a complete disregard for their staff as well.

But with the laying off of a significant number of workers, it could mean a poorer service.

How do they get poorer than the complete disregard for their users they already show?


Coinbase share price tanking and laying off 20% of its workforce. This is the same company whose recent fillings with the SEC called all their customers their "unsecured creditors". Worth bearing that in mind if you still have any funds in their wallets, for some reason.

[NotATether]

Many companies shrink staff when projects are finished or when growth slows. Tech companies, don't always do this but look for 'a reason' to shrink staffing.

And then it becomes much harder for them to hire a similar quantity of workforce (think the 18% that Coinbase just fired), because it costs even more money to train them to the standards of the previous workforce.

Then again, this is CoinBase's problem making their finances dependent on the market trends of BTC. Companies (I'm not including trusts here) should never store their operating assets in volatile currencies.

[hugeblack]

I think that this step is expected and taken by many major companies in anticipation of any economic recession and to avoid problems that will occur in the share price if you decide to reduce the number of employees in the recession wave.

It may also be aimed at making some profit in the stock market, as investors prefer companies that reduce the number of employees, but the move is just a tactic and nothing more and does not indicate a real financial problem.

Does anyone know the number of employees?

[o_e_l_e_o]

And then it becomes much harder for them to hire a similar quantity of workforce (think the 18% that Coinbase just fired), because it costs even more money to train them to the standards of the previous workforce.

Armstrong seems to think they'll just hire the same people back again:

I hope that as we grow again we get a chance to hire you back.

I'm sure the people you just treated like dirt will be rushing to come back and work for you again.

Does anyone know the number of employees?

1,100.

[m2017]

Coinbase to Lay Off 18% of Workers as Crypto Winter Worsens

    Biggest US crypto exchange joins Gemini, BlockFi in staff cuts
    Company plans to end current quarter with about 5,000 workers

Coinbase Global Inc. announced Tuesday it will lay off 18% of its workforce in another sign of a worsening crypto downturn that’s shaved off hundreds of millions of the total cryptocurrency market value.

The U.S.’s biggest crypto exchange is following in the footsteps of other cryptocurrency-related businesses that have recently cut staff, including rival exchange Gemini Trust Co. and lender BlockFi Inc., both of which cited the arrival of a crypto winter -- a prolonged downturn -- as the reason for the layoffs.
https://www.bloomberg.com/news/articles/2022-06-14/coinbase-to-lay-off-18-of-workers-as-crypto-downturn-worsens

Cryptocurrency related business are clearly having financial problems now. Although there is some spike in trading volume when there is a high volatility,  the bear market is much worse for exchanges than a bull market.

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.

Do you think that exchanges may have financial difficulties and because of this they can take away all deposits? Of course, it is extremely reckless to store your crypto in exchanges, but I don’t think that now they can start massively taking cryptocurrency from their users. For this, exchanges can come up with any reason, fortunately, the user agreement allows them to do this easily and without current problems. Also, exchanges should have reserves, therefore, it seems to me, the reduction of employees is not a reason for a new panic, and now there is a reduction in the costs of the exchanges business.

[mk4]

Tbh, I really wouldn't overthink them being insolvent and all those kinds of things. It's highly likely that they're expecting lower demand in the future, and they're just taking into consideration the deeper economic risks. It's not like only Coinbase is laying off employees, a lot of tech businesses are as well.

[dkbit98]

People really didn't expect it will go down til 20k.

I expected it to go this low and it's possible it will go even lower if we look the bigger picture, market conditions and charts.

Let's just hope that remaining companies (tech and crypto) are able to sustain current market conditions ...

All Bitcoin and shitcoin market is such a small percentage from total economic collapse, that it is insignificant in bigger pitcure.
Someone posted that county of El Salvadar lost most money from their Bitcoin investments, but this is just a tiny percent of their total investments.
I have no idea how Microstartegy and Michael Saylor feel now, but I know they are cosnidering Bitcoin to be long term investment.

Laying people off when business isn't doing well is entirely expected as suchmoon has said. However, the circumstances surrounding these lay offs is pretty disgusting, even for Coinbase's already abysmal standards.

Now it just makes me think even worse about Coinbase and all other centralized exchanges.
We can expect that next in the line will be Binance exchange, and every other platform that earns interest on Bitcoin and other coins.
It's time to withdraw your coins to your own non-custodial wallet asap.

[carlfebz2]

This is more or less expected, and it is not only related with Bitcoin crash, whole economy is like Titanic ship that is currently crashing, and I think this looks like it was intentional plan :/

People really didn't expect it will go down til 20k. But after the war broke and sanctions started to put on russia from everywhere, this began, not just crypto but the almost all market are affected.

While in the other hand, it's an opportunity to bought more in this dip.

A bit expected for companies on laying off some workers and this isnt something surprising actually yet they would really be needing on doing such step for them to lessen out expense considering that the market is a on the hellish side and its true that this isnt only happening on crypto space but also in other traditional markets as well which we shouldnt really isolate this issue on this market alone.

I dont know about other issues like this one is intentional or something have some underground intents or something but once companies do made out some
lay-offs then it would be particularly meaning about their finance situation.

[Darker45]

Then again, this is CoinBase's problem making their finances dependent on the market trends of BTC. Companies (I'm not including trusts here) should never store their operating assets in volatile currencies.

In fairness to Coinbase, the overall economy is having a hard time. It's not just Coinbase that is forced to lay off some of its workers. So I guess what the company is going through right now isn't solely due its mismanagement. External factors must also be involved. For one, within the crypto sector the likes of Crypto.com, Gemini, and Blockfi are also doing the same laying off of workers. But this isn't even just about the crypto winter.


https://twitter.com/Bitcoin/status/1536725501045243912/photo/1