As the bad patch for crypto continues, more jobs are being lost. In the latest layoff cycle, Coinbase and ConsenSys have also announced staff cuts to weather bad times.
In a company blog on Tuesday, January 10, Coinbase CEO Brian Armstrong shared the exchange’s plans to cut its expenses by letting off a large number of employees. ConsenSys also has plans to cut a portion of its Staff.
Coinbase Cuts 20% of Staff
According to the company update on Tuesday, Brian Armstrong said that the fallout of the 2022 blowouts had also impacted Coinbase. So to maintain an appropriate operational efficiency to weather downturns in the crypto market, the crypto exchange is planning to reduce its operating expenses by 25%.
Among the shutdown of other projects, 20% of 4,700 Coinbase staff is also going home. This 20% cut amounts to 950 employees. The blog post suggests that the layoff process has been completed, and the impacted employees were notified on Tuesday.
The affected members will receive a minimum of 14 weeks of base pay, health insurance, and other benefits. Employees on a work visa and outside of the US will receive extra support. The exchange has also enabled access to its Talent Hub to help affected employees in their next career opportunities.
The CEO of the US exchange has also announced the shutdown of many less success-feasible projects.
Brian Armstrong stated:
“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 was no way to reduce our expenses significantly enough without considering changes to headcount.”
In an 8-K filing with the SEC on Tuesday, the exchange estimates that it will incur approximately $149 million to $163 million in total restructuring expenses, including $58 million to $68 million in cash charges related to employee severance and other termination benefits.
This is the second major layoff round at the cryptocurrency exchange. In June 2022, Coinbase eliminated 18% of its workforce, or nearly 1,100 jobs.
ConsenSys to Reduce Headcount
According to the reports citing a person familiar with the matter, MetaMask developer and Ethereum development studio, ConsenSys is also in the final process of letting off more than 100 employees from its workforce of about 900. The firm has not yet confirmed the layoff on any of its channels.
As reported, crypto lender Genesis has also recently sacked 30 percent of its workers in its second round of layoffs in six months.