Coinbase Global plans to cut 1100 jobs or 18% of staff

The cryptocurrency exchange Coinbase is cutting 18% of its workforce amid depressed markets and concerns of a looming recession.

The company’s chief executive, Brian Armstrong, informed employees of the layoffs in a note Tuesday morning, saying that the company had “over-hired” its staff during a crypto boom.

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The company will let go of about 1,100 people, reducing its workforce to 5,000.

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"At the time, we were in the early innings of the bull run, and adoption of crypto products was exploding".

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Mr. Armstrong wrote. "There were new use cases enabled by crypto getting traction practically every week."

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The company had 1,250 employees at the beginning of 2021, the note said, with Mr. Armstrong saying it "grew too quickly."

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Coinbase on June 2 said that it would rescind job offers and extend its hiring freeze to battle the economic downturn.

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The layoff announcement on Tuesday signaled further stress on the platform as market drops hit cryptocurrency assets.

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