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.
The company will let go of about 1,100 people, reducing its workforce to 5,000.
"At the time, we were in the early innings of the bull run, and adoption of crypto products was exploding".
Mr. Armstrong wrote. "There were new use cases enabled by crypto getting traction practically every week."
The company had 1,250 employees at the beginning of 2021, the note said, with Mr. Armstrong saying it "grew too quickly."
Coinbase on June 2 said that it would rescind job offers and extend its hiring freeze to battle the economic downturn.
The layoff announcement on Tuesday signaled further stress on the platform as market drops hit cryptocurrency assets.