14 Jun 2022

Cryptocurrency Exchange Coinbase Retrenchment 18%.

Digital currency exchange Coinbase said Tuesday it would lay off 18 percent of its staff, signaling strong economic conditions and a rapid increase as the cryptocurrency market collapsed.
Coinbase layoffs correspond to about 1,100 positions, the platform said in the stock exchange installation.

This "difficult decision" was made "to ensure the survival of the fittest in the current economic downturn," chief executive and co-founder Brian Armstrong said in a statement.

"It looks like we're getting into trouble after 10+ years of economic growth."

Bitcoin sank on Monday for less than 18 months under $ 23,000 amid a massive cryptocurrency crash, as investors avoided risky assets as a result of brutal global market sales, seven months after the apparent unit rose sharply.

As the stock market has struggled since the beginning of the year with inflation at the top of the decade, strong global monetary policy has helped keep the crypto industry afloat.

Coinbase, a platform that allows users to buy and sell cryptocurrency, has already warned in mid-May that the number of active users is declining. The team posted a total loss of $ 430 million in the first quarter of 2022.

The company believes that "managing our costs is important" while the market is experiencing a downturn, Armstrong said, noting that the company has already experienced a number of cryptocurrency downturns.

But in this case, "we have grown faster," he said. Coinbase has gone from 1,250 employees in early 2021 to more than 6,000 so far.

The forum did not change its annual forecasts but warned that its results would likely fall under the forecast list.

Coinbase stock fell 6.2 percent in pre-market trading after already falling 11.4 percent on Monday.

The U.S. technology sector is in the throes of a major upheaval, with many newcomers announcing layoffs, while bullies like Facebook, Amazon and Uber have warned of slowing down hiring.

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