Coinbase lays off 18% of its workforce. The CEO cites an upcoming crypto winter

Coinbase, a cryptocurrency trading platform, disclosed on Tuesday that it has cut off around 18 percent of its workforce, or about 1,100 individuals.

Coinbase CEO and cofounder Brian Armstrong attributed the company's severe layoffs on an approaching recession in the United States and an impending "crypto winter."

According to Forbes, a "crypto winter" occurs when prices "contract and remain low for an extended period."

Trading revenue (our primary revenue source) has decreased dramatically in previous crypto winters," Armstrong remarked.

While it's difficult to foresee the economy or markets, we always prepare for the worse so that we can run our firm in any situation.

While it's difficult to foresee the economy or markets, we always prepare for the worse so that we can run our firm in any situation.

He did, however, acknowledge that the corporation has developed too swiftly.

Coinbase became the first major bitcoin startup to go public last year.

The news was presented suddenly to several employees. Employees affected by the layoff were denied access to Coinbase systems.

Notifications were sent to the employees' personal email accounts as a result of this.

According to NPR, the year 2021 was the pinnacle of cryptocurrency craze, according to Eswar Prasad, an economics professor at Cornell University.