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Coinbase layoffs pile up as crypto markets grapple with downward trends and ‘unscrupulous actors’
Fast Company ^ | 01-10-23 | Michael Grothaus

Posted on 01/16/2023 7:35:36 AM PST by fluorescence

Coinbase CEO Brian Armstrong has announced that the beleaguered crypto exchange will be laying off another 950 workers today—nearly 20% of its workforce. The cuts come after Coinbase previously laid off about 18% of its workforce, or around 900 workers, last June.

In a blog post announcing the latest round of cuts, Armstrong cited a downward-trending crypto market in 2022 combined with downward macroeconomic trends as the reason for the layoffs. But he also alluded to the sprawling FTX scandal in noting that “fallout from unscrupulous actors in the industry” is also impacting the crypto markets, leading to today’s layoffs while warning the industry could see “further contagion” before things get better.

Armstrong said Coinbase’s annual planning process, which takes into account how the crypto markets are performing, made it clear that Coinbase would need to reduce expenses in 2023 in order to improve its chances of doing well. As a result, it will reduce its operating expenses by 25% quarter over quarter. “While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount,” Armstrong said.

Armstrong said affected workers will be notified of their layoff today and have already had their access to Coinbase’s systems revoked while acknowledging “this last step feels sudden and harsh, but I believe it’s the only prudent choice given our responsibility to protect customer information.”

Coinbase’s announcement comes as the company’s stock had been getting a much-needed boost. Last week, it settled a compliance lawsuit with the State of New York. But after news of the layoffs broke, COIN stock is currently trading down 1.4% at $37.72 per share in pre-market as of the time of this writing. That’s a long way off from COIN’s high of over $319 per share in October 2021.


TOPICS: Business/Economy
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1 posted on 01/16/2023 7:35:36 AM PST by fluorescence
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To: fluorescence

Buy crypto they said......you’ll clean up they said......totally safe and secure they said.....


2 posted on 01/16/2023 7:37:30 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: fluorescence

Surely this scam can separate a few more fools from their money.

“Blockchain is safe.”

Bwahahahahahaha.


3 posted on 01/16/2023 7:39:27 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: fluorescence

The laid off workers may no longer be getting a paycheck but they’ve undoubtedly have some sweet stock options to fall back on.


4 posted on 01/16/2023 7:39:50 AM PST by glorgau
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To: fluorescence
Just as btc is bouncing up.


5 posted on 01/16/2023 7:44:24 AM PST by Theoria
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To: Theoria

Where is the tulip-bulb chart—I hear they are going to show great profits in the spring-time!


6 posted on 01/16/2023 7:45:46 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: cgbg

Earnings season just starting, we might have some dips out there lol!


7 posted on 01/16/2023 7:46:42 AM PST by Theoria
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To: V_TWIN

It’s a way around government interference they said
Oh, wait. It’s a money laundering scheme for deep state election manipulators.


8 posted on 01/16/2023 7:52:16 AM PST by Track9 (You are far too inquisitive not to be seduced…)
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To: fluorescence

Coin base is probably the “cleanest” of the crypto exchanges.

But they fell into the trap of dealing with “crap” crypto. (I know some think they are all crap! Lol)

Stick with fundamentals and stick with what you understand. Some of the major “coins” are not going away. But it is a traditionally crazy rise. It’s NOT an investment—if you try to apply that standard to it you will be burned over and over.


9 posted on 01/16/2023 7:54:07 AM PST by Vermont Lt
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To: fluorescence

I’ve never really understood Bitcoin. It seems like cryptocurrency has never caught on as an alternate form of money. But I don’t even understand if it was really ever intended to be an alternate form of money or just a way to invest money.


10 posted on 01/16/2023 7:54:14 AM PST by Dilbert San Diego
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To: Track9

Once I read and understood what Snowden disclosed it became obvious that no computer hardware or software could escape .gov snooping.

It was a false hope from day one.


11 posted on 01/16/2023 7:55:34 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: cgbg
“Blockchain is safe.”

The technology itself is as secure as ever. Idiots allow unscrupulous third parties access to the crypto passcodes and lose everything.

12 posted on 01/16/2023 8:07:04 AM PST by Right_Wing_Madman
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To: V_TWIN

>> Buy crypto they said......

I heard “them”!
(But I never believed them.)


13 posted on 01/16/2023 8:10:47 AM PST by Nervous Tick (Truth is not hate speech.)
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To: Track9

If you do a little research into bitcoin you’ll find that nobody even really knows who thought it up and created it.

Supposedly it was someone that goes by the name Satoshi Nakamoto......but nobody has ever seen this person and if they even exist at all, and yet people blindly dropped who knows how much money into it.

I guess greed can do that to a person.


14 posted on 01/16/2023 8:14:06 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: Right_Wing_Madman

There is no “safe” technology.

A lot of folks can only learn that simple fact the hard way.

.gov will find hardware and/or software front doors, back doors, human social engineering, whatever it takes.

If you want safety buy a dog, a cat or a carrier pigeon.


15 posted on 01/16/2023 8:22:49 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: fluorescence

“unscrupulous actors”

NO! Say it isn’t so! It just cannot be.


16 posted on 01/16/2023 8:49:54 AM PST by ProtectOurFreedom (Once you get people to believe that a plural pronoun is singular, they'll believe anything - nicollo)
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To: fluorescence

crypto money ...as said in’tulsa king’, can’t put ketchup on it, so its no good.


17 posted on 01/16/2023 9:26:56 AM PST by Terry L Smith
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To: fluorescence

If they get rid of unscrupulous actors there will be no one left.

Like any ponzi scheme those who got in early clean up and those who got in later eat dirt.


18 posted on 01/16/2023 10:34:42 AM PST by Seruzawa ("The Political left is the Garden of Eden of incompetence" - Marx the Smarter (Groucho))
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To: cgbg

Sure, it’s safe. Dak Prescott has been pimping for it since the season began!


19 posted on 01/16/2023 10:44:28 AM PST by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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To: Vermont Lt
You act like there is good crypto and bad crypto. Crypto is just made up fiction that is worth zero and is always worth zero.There have been rubes that have paid for worthless things for thousands of years. The Bible says the Antichrist will control who buys and sells in the last days. Now we hear that governments are thinking about converting to Crypto and outlawing real money.

People talk about paper money being worth zero, but what makes Crypto worth anymore?

20 posted on 01/16/2023 12:33:58 PM PST by chuckles
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