Coinbase continues to decline as the market continues to fall. For the second time this year, publicly traded crypto market Coinbase Global Inc has laid off a small portion of its staff due to the stock market crash. At this time, the exchange is laying off more than 60 employees from its collective labor and corporate unions. The platform made this announcement on November 10.
These recent layoffs follow the layoff of 1,100 employees representing 18% of its workforce five months ago in exchange for preparations for the long crypto winter. Before that, the change stopped previous plans to hire new employees. This is done to ensure that it is well suited to succeed during and after a market failure. At the time, CEO Brian Armstrong admitted that the exchange continued to pay for work in early 2021 and made changes due to current circumstances.
Interestingly, Brian predicts that the crypto winter will last for a long time. In August, he said the bear market is expected to last 18 months before digital asset prices enter a period of recovery.
Unfortunately, market conditions have been worsened by the recent FTX issue. The sudden collapse of FTX, which is now passing, has reduced the value of cryptocurrencies.
Recently, while expressing sympathy for everyone involved in FTX, especially those who may lose money, Brian said that Coinbase is not affected by the FTX fallout. However, the exchange receives up to 90% of its income from transaction fees, which is higher than the industry average, and in the bear market this business is clearly in trouble.
The platform in its third quarter report recorded a loss of $545 million, which is in contrast to the profit of $406 million it recorded in the same period in 2021.
Coinbase and The Crypto industry continues to shrink
Inevitably, the bad bite of the extended bear market has forced many crypto companies to cut a significant number of their employees in order to stay afloat and continue to operate.
Although November is less than two weeks away, NFT giants Dapper Labs, digital payment platform Stripe Inc and Facebook parent company Meta have announced reduced operations in response to the reality of the crypto market.