Coinbase (COIN.US) shares are falling today by more than 4.5% due to information about the planned layoff of 18% of employees as executives expect recession and a long-term collapse on the cryptocurrency market.
- The president of the company, Mr. Brian Armstrong, announced that the company should now focus on reducing employment and better cost management.
- Armstrong pointed out that the company grew too fast during the crypto boom
- At present, the company employs nearly 5,000 full-time employees, so the layoffs may reach as many as 1,100 people.
- The company will try to prevent declines in trading activity (which, he added, is a common symptom in dynamic bear markets)
- During the publication of the results for the last quarter, Coinbase announced a decrease in the number of users and a 27% decrease in revenues on an annual basis. The main source of the company's revenues are transaction fees, which are closely related to the activity of investors.
- Chief Operating Officer Emilie Choi reassured that the affected employees will have the opportunity to look for jobs in Coinbase Ventures portfolio companies, and the process of the layoffs is to be one-off.
Coinbase (COIN.US), D1 interval. Shares of the US crypto giant plummeted in the first part of the session on Wall Street and are moving towards historic lows in the region of $41.5 per share. Source: xStation5
