Is Coinbase laying off employees?

Yes, Coinbase has been conducting layoffs in response to challenging market conditions.

Layoffs in 2023

In early 2023, Coinbase announced a layoff of 950 employees, which amounted to about 20% of its workforce. This decision was made as part of the company's broader cost-cutting efforts, which aimed to reduce operating expenses by 25%. The move was attributed to the ongoing "crypto winter," a prolonged downturn in the cryptocurrency market that has affected trading volumes and, consequently, the company's revenues【92†source】.

Previous Layoffs in 2022

Coinbase had already made significant workforce reductions in 2022, when it laid off 1,100 employees, around 18% of its staff. This earlier round of layoffs was conducted in anticipation of a potential recession in the U.S., and Coinbase even rescinded a number of accepted job offers at the time【91†source】【92†source】.

Reasons for the Layoffs

The layoffs at Coinbase are primarily a response to the reduced trading volumes and revenue that have accompanied the bear market in cryptocurrency. Coinbase’s business relies heavily on trading fees, which have dropped significantly since the market downturn. In addition to reducing its workforce, Coinbase has also chosen to shut down several projects that were deemed less likely to succeed, in order to focus on core areas【90†source】【92†source】.

Support for Affected Employees

Coinbase has made efforts to provide support for laid-off employees. Affected workers in the U.S. received at least 14 weeks of severance pay, with additional compensation for those with longer tenure. The company also provided extended healthcare benefits and transition support, especially for employees on work visas【92†source】.

Conclusion

The layoffs at Coinbase reflect broader challenges in the cryptocurrency industry, where market volatility has led to significant cost-cutting measures across various companies. Coinbase remains committed to navigating these challenges by focusing on essential projects and maintaining operational efficiency【92†source】【91†source】.