Crypto winter is coming. Mass layoffs at the most significant American exchange Coinbase

Coinbase, the largest cryptocurrency exchange in the US, has decided to lay off almost 20% of its employees due to the market collapse and the expectation of a recession. This was announced by the company’s general director, Brian Armstrong.

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“It appears we are entering a recession after more than a decade of economic boom. The recession could lead to another crypto winter and could last for a long period. While the economy and markets are difficult to predict, we always prepare for the worst so that we can conduct business in any environment “, Armstrong’s letter to his subordinates states.

CNBC indicates that Coinbase has about 5,000 full-time employees. The company wants to lay off 18% of its staff, so a reduction of around 1,100 people is expected.

“Personnel costs are too high to operate effectively in this uncertain market. In our case, it is clear that we hired too many people,” Armstrong said.

Coinbase is a publicly traded company. The value of its shares has fallen by almost 80% since the beginning of the year. During this same time, Bitcoin fell by more than 50%.

In early June, Elon Musk ordered the layoff of 10% of Tesla’s staff because he had bad feeling about the economic situation.

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