The crypto industry is currently going through a rough patch, and Coinbase is no exception. Recently, the leading cryptocurrency exchange announced its plans to cut 950 jobs, which equates to 20% of its workforce. This comes just months after the company had to let go 18% of its staff in June, citing the need to manage costs and address rapid growth.
You might be thinking, "Hold on, didn't Coinbase announce plans to hire 2,000 jobs just a while ago?" Well, that's the thing with this industry - it's incredibly volatile. And in these tough times, companies need to be nimble and adapt to the changing market conditions.
I can't help but feel a bit of déjà vu here. We've seen similar layoffs across the tech industry, with major tech companies like Amazon and Salesforce also having to make similar cuts. And let's not forget, the crypto markets have been taking a beating lately, with the downfall of FTX being a particularly sore spot for the industry. As Coinbase's CEO, Brian Armstrong, put it, it's been a "black eye" for the industry.
But, it's not all doom and gloom. Coinbase's shares did rally15% yesterday. And while they are still down 83% in the past 12 months, the company is taking steps to bring operating expenses down by 25% by the end of the current quarter.
All in all, this serves as a reminder that the crypto industry is still in its early stages and it's important for companies to have a sustainable business model that allows them to make smart choices on hiring and firing. It's not all just "to the moon" and "Lambos". And that's something that's important to keep in mind as we navigate this ever-evolving space.
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