• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
Crypto Bitcoin Coinbase global coin nasdaq altcoins crypto

Why Coinbase Will Cut 18% Of Workforce To “Stay Healthy During Recession”

Reynaldo Marquez
by Reynaldo Marquez
3 years ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Major crypto exchange Coinbase published a message from its CEO, Brian Armstrong. The company has decided to reduce its workforce by 18% to “ensure we stay healthy during this economic downturn”.

Related Reading | Lending Platform Celsius Freezes Withdrawals, Raising Liquidity Concerns

Last year, Coinbase became the first crypto exchange to debut in public markets under the ticker COIN. This event marked the beginning of a downtrend that will see the slow collapse of Bitcoin and the crypto market to its current levels.

As the company receives its revenue from crypto investors, the price of its stocks seems highly correlated with the performance of Bitcoin and other cryptocurrencies. This nascent asset class has been trending to the downside and taking Coinbase and others with it.

The downside price action across global markets is caused by the U.S. Federal Reserve (FED) and its attempts to bring down inflation which stands at a 40-year-old high. Over the past decade, Coinbase’s CEO said, the economy grew but now it trends in the opposite direction. Armstrong said:

We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period. In past crypto winters, trading revenue (our largest revenue source) has declined significantly.

The last time Bitcoin and the crypto market entered a bear phase was in early 2018. It took the nascent ascent over two years before it re-entered price discovery.

This is nothing new for Coinbase, its CEO claims the company has survived 4 crypto bear markets with a decline in revenue. However, they believe in “carefully managing our spending through every down period”.

In addition to these factors, Armstrong believes Coinbase has grown “too quickly” over the past year. During the high of the bull market, as more people entered the crypto space, the company expanded.

In hindsight, Armstrong believes, the company “over-hired” after a period of 200% year-over-year growth. The time has come to re-adjust.

Coinbase Choses Executives Over Its Employees?

The decision to cut down on its workforce has been notified to affected Coinbase employees.  Over 1,000 people will be impacted by Armstrong’s decision.

These people will be given a 14-week severance package plus a bonus if they have been with the company for over 1 year. In addition, they will provide them with health insurance coverage for 4 months. The company is committed to helping its affected employees to secure new positions.

In other words, people will have around 3 months to find a new job in an economic situation that Armstrong himself classified as a “recession”. The executive concluded his message with the following statement:

I also expect you will all feel some level of fear, uncertainty and doubt about the future. Know that we made these hard decisions to ensure our future is bright.

The company is facing backlash for its hiring decisions. In addition to layoffs of 18% of its workforce, the company rolled back job offers that were “promised” to new hires.

Over 300 new hires, ready to join the exchange in the short-term, had to return to their old jobs or were left without options, a report from Vice claims. The media outlet talked to 17 of the people affected by the exchange’s decision.

Many described the situation as “reckless and negligent”. Others said: “This whole thing just kind of fucks me.”

During the 2021 bull market, Coinbase executives allegedly cashed out over $1.2 billion by dumping their stocks. Armstrong alone allegedly made over $290 million from share sales as the company proceeded to “over-hired”.

Related Reading | Coinbase Sponsorship Draws Criticism From WNBA Fans Amid Market Collapse

At the time of writing, COIN’s price trades at $51 with a 1% loss on the 4-hour chart.

Coinbase COIN COINUSD
COIN trends to the downside on the 4-hour chart. Source: COINUSD Tradingview
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Reynaldo Marquez

Reynaldo Marquez

Follow

As an editor at NewsBTC, Reynaldo is an experienced journalist passionate about all things crypto. Reynaldo has interviewed key industry leaders, and created unique pieces analyzing the promise of crypto as the next frontier for an economic and social transformation of humanity. Since 2018, he has been at the forefront of the industry, closely following every major development and analyzing critical events at the heart of the crypto industry. With a keen eye for detail and an unwavering commitment to excellence, Reynaldo has been instrumental in bringing the latest news and insights to the crypto community. Outside of work, Reynaldo enjoys lifting weights and literature, which he believes gives him a unique perspective into the world of crypto. As an aspiring trader, he is always looking for new opportunities to explore and believes that crypto holds the key to unlocking the future of finance.

Full Profile

Related Posts

FTX

FTX’s Sam Bankman-Fried Calls Handing Firm Over To New CEO ‘His Biggest Mistake’ — Details

5 hours ago
crypto

Crypto Meets Retail: Walmart-Linked Fintech Expands Into Digital Assets

20 hours ago
crypto, crypto exchange, Bitcoin, FTX

Crypto Oversight Concerns: State Regulators Warn Market Structure Bill May Hinder Anti-Fraud Protections

1 day ago
Japan

Crypto In Japan May Soon Open Wider As Holdings Giant Pushes Expansion

1 day ago
Grok Predicts Dogecoin Price: Is Maxi Doge the Next 1000x Crypto to Explode?

Grok Predicts Dogecoin Price: Is Maxi Doge the Next 1000x Crypto to Explode?

2 days ago
Whales Buy Nearly $1M in 5 Days: Bitcoin Hyper Is the Next Crypto to Explode

Whales Buy Nearly $1M in 5 Days: Bitcoin Hyper Is the Next Crypto to Explode

2 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • The Quiet Market Shift Investors Might Be Missing: How Tapzi Is Challenging Institutional Favorites

    The Quiet Market Shift Investors Might Be Missing: How...

    2 days ago
  • Investors Search for Long-Term Upside in This Under-$0.01 Crypto of 2025 Tapzi

    Investors Search for Long-Term Upside in This Under-$0.01...

    2 days ago
  • MoonBull Presale Explodes with over 11,800% Projected ROI as Uptober Sends the Market Soaring

    MoonBull Presale Explodes with over 11,800% Projected ROI...

    2 days ago
  • 狗狗幣引領『Uptober』Meme...

    2 days ago
  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.