US-based Coinbase, a crypto exchange platform, announced on Tuesday that it is reducing its workforce by about 25 per cent, or 950 employees, to reduce operating expenses as the crypto market is trending downwards.
Last year, the company laid off 18 per cent of its workforce owing to economic conditions and rapid expansions.Â
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our fellow colleagues, there is no way to reduce our expenses significantly, without considering changes to headcount,” says Brian Armstrong, CEO and co-founder.
Besides reducing the workforce, the crypto exchange will shut down several projects with a lower probability of success.