Coinbase Global Inc, the publicly traded American cryptocurrency trading platform has announced the retrenchment of approximately 18% of its global workforce. Sharing the reasons for the action, Co-Founder and Chief Executive Officer, Brain Armstrong said the current economic climate and the exchange’s uncertain business outlook have necessitated the tough decision to let some of the staff go.
Armstrong detailed the fact that the firm, in a bid to match up with its growth in early 2021 went on a hiring spree, onboarding so many staff that in this period of downtime, this massive staff strength is becoming more of a liability than an asset. The CEO said he takes responsibility for the retrenchment, but that it is needed to place the firm on a path where it can fulfill its potential.
“We have now exceeded the limit of how many new employees we can integrate while growing our productivity. For the past few months, adding new employees has made us less efficient, not more. We have seen ourselves slow down considerably due to coordination headwinds, and difficulty fully integrating new team members. We believe the targeted resourcing changes we are making today will allow our organization to become more efficient,” Armstrong said in the memo shared with employees
The employees that are affected have been cut off from the company’s platform as Armstrong said the move was made to sever ties so as to prevent them from doing anything rash by virtue of the decision.
Coinbase Workforce Retrenchment: an Industry Trend?
The harsh bites of the cryptocurrency industry are arguably fueling a lot of turmoil amongst many blockchain-based companies. While the retrenchment of the Coinbase workforce did not come as a surprising event seeing COO Emilie Choi had once made a related move to halt hiring, Gemini exchange recently laid off 10% of its workforce, citing a similar economic downturn.
While all of these trading platforms are jostling to cut down costs, the Binance exchange has remained relatively aggressive in hiring new staff, a trend that showed the laying off of workers is not a comprehensive industry trend.