Coinbase to Cut 18% of Workforce Amid Crypto Slump

By Will Feuer

Coinbase Global Inc. is reducing its workforce by 18%, Chief Executive Brian Armstrong said Tuesday, as cryptocurrency firms and tech companies slash jobs and pull back on hiring amid fears of a looming recession.

"We appear to be entering a recession after a 10+ year economic boom," Mr. Armstrong said in a message posted online by Coinbase, the largest American crypto exchange.

"A recession could lead to another crypto winter, and could last for an extended period," he said. "While it's hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment."

Just last month, Coinbase said it would slow its pace of hiring and rescinded offers to employees who had already accepted jobs. Entering 2022, the company had planned to triple its head count, Chief Operating Officer Emilie Choi said last month, but that goal has been shelved.

Employees affected by the job cuts would receive notification in their personal email because Coinbase has cut their access to company systems, Mr. Armstrong said. Affected employees are expected to receive at least 14 weeks of severance plus an additional two weeks for every year of employment beyond one year.

They would also get four months of COBRA health insurance in the U.S., and four months of mental health support globally. They also would get access to the company's talent hub, where Coinbase plans to work to connect affected employees with open positions at other firms.

The layoffs come as prices of the largest cryptocurrencies tumble. Bitcoin recently traded below $22,000 per coin while Ethereum traded below $1,200 a coin.

The decline in crypto prices has hammered shares of Coinbase. The stock traded more than 6% lower, at $48.79 a share, in premarket trading. Shares were nearly 80% lower so far this year, before Tuesday's implied losses.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

June 14, 2022 08:54 ET (12:54 GMT)

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