Coinbase will cut more staff if the market deteriorates

After recently downsizing, the top Coinbase executive hinted that there could be further staff reductions if the massive sell-off in the crypto market deteriorates, the Financial Times reported. Faryar Shirzad, director of corporate policy, told FT

“You never say never. The only commitment we can make is that we will operate the business responsibly and for the long term and if that requires additional measures, we will take them”.

He added, however, “We are not anticipating it at this time.”

The platform has hit the headlines since it decided to lay off 18% of its employees, or nearly a fifth of its workforce. Company CEO Brian Armstrong then wrote to employees saying the “difficult decision” had been made to provide stability during the market downturn.

In 2022, the company that boasts of being the largest cryptocurrency exchange in the United States has struggled to retain consumers amid market volatility. The platform revealed in May that it lost $430 million in the first quarter due to a sharp drop in trading fees.

The number of transactional users of the exchange also fell, and the company predicted that trading volumes and users would fall again in the second quarter.

“Coinbase is operating in a very, very challenging environment”

Shirzad said Coinbase was operating in a “very, very challenging environment. “The company has done what it has to do decisively to be able to build for the long term,” he added.

On the other hand, many of these terminated employees complained that they had not been notified before and only knew when access to their system was cut off, while some of them found help in the crypto community for job leads.

Meanwhile, Kraken recently announced over 500 open positions for this year, calling Bear Markets the best for recruiting talent. Crypto giant Binance also plans to fill 2,000 new positions globally, according to company CEO Changpeng Zhao.

In a more concerning development for the trading platform, a class action lawsuit was filed against Coinbase on June 16, alleging the company misrepresented the risk of TerraUSD as an algorithmic stablecoin and failed to disclose its financial relationship. with Terraform Labs.