The crypto bear market has forced the Coinbase exchange to cut costs by laying off 950 employees.
Coinbase Global Inc. has announced that it will lay off around 950 employees from its total workforce as part of its restructuring plan. It will be the third round of employee termination since the start of the crypto bear market.
The restructuring will cost the company around $150 million as it plans to survive the harsh crypto winters with declining trading volume and tightening regulations. Just 6 days back, Coinbase was ordered to pay $50 million fine to New York regulators to settle background check charges.
Last year in June 2022, the company slashed 1100 jobs and in November it cut down nearly 60 jobs in the recruitment and onboarding team.
The news came days after the crypto lending platform Genesis announced firing 30% of its workforce to survive the bear market. Genesis is owned by the parent company Digital Currency Group which also runs CoinDesk, and GrayScale Investments.
Many users have lost faith in crypto platforms after FTX exchange filed for bankruptcy in November, taking away $10 billion worth of customers’ deposits. The news resulted in crypto asset withdrawals from all the leading platforms causing a liquidity crunch.
The overall marketcap of the industry now stands at $860 billion after reaching an all-time high of around $3 trillion during the bull run.
Celsius Network, Voyager Digital and Three Arrow Capital are other leading platforms that couldn’t survive the bear market. The situation seems to have worsened after the FTX crash.
The market is expected to plunge further with speculations of Genesis going bankrupt anytime soon this year if the situation doesn’t improve with the passing of time.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.