Due to the highly bearish situation in the crypto market, Coinbase is cutting down its employees strength to sustain itself.
Coinbase is a leading crypto exchange, which is backed by the US-based Nasdaq listed company. Exchange is known to provide services under highly compliance-based works. Coinbase is currently standing at 3rd rank in the crypto industry, in terms of the highest trade volume contributor via its platform.
On 14 June, the Coinbase exchange announced through a blog post that it reduced its team power by 18% because of the start of a critical bear market situation.
Coinbase CEO Brian Armstrong stated that the current situation is becoming more likely after 10 years and now we may enter into another crypto winter situation.
“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.”
Brian also noted that in the last 4 crypto winters since 2012, Exchange survived successfully under a better strategy and planning to run the business. The CEO also said that it is all about the downfall in the revenue of the company, which may be a bitter decision for employees.
Coinbase CEO asserted that the exchange has already increased its working team strength, around 4 times over the last 18 months and the salary of employees is high, so it is very tough to manage the employees in the uncertain market situation.
The announcement noted that all departing workers of Coinbase will get support in finding a new role, which also includes a minimum of 4 months of severance as well as an additional two weeks for every year of employment beyond one year. Additionally, employees with getting the support of 4 months of health insurance in the US and 4 months of mental health support for global employees.
It is worth noting that such decisions are coming from the Coinbase exchange just after a few days of some criticism raised against chief employees from the small role-playing employees.
Coinbase CEO took to Twitter and said that it is very easy to raise questions but hard to bring solutions for the same.