{"id":1804433,"date":"2023-01-13T07:20:11","date_gmt":"2023-01-13T12:20:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1804433"},"modified":"2023-01-13T07:23:57","modified_gmt":"2023-01-13T12:23:57","slug":"coinbase-to-cut-a-fifth-of-its-workforce-in-a-second-round-of-layoffs","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/coinbase-to-cut-a-fifth-of-its-workforce-in-a-second-round-of-layoffs\/","title":{"rendered":"Coinbase to Cut a Fifth of Its Workforce in a Second Round of Layoffs"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcoinbase-to-cut-a-fifth-of-its-workforce-in-a-second-round-of-layoffs%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1804433&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"group\">\n<p>Coinbase will reduce a fifth its workforce after a June 2022 staff reduction. This is in an effort to preserve its assets in the face of a severe downturn in the crypto industry.<\/p>\n<\/div>\n<p>In recent months, some of Silicon Valley&#8217;s largest companies have been making steady job cuts announcements.<\/p>\n<p>The company plans to cut around 950 positions\u00a0for the quarter ending in March,\u00a0<a href=\"https:\/\/www.coinbase.com\/blog\/a-message-from-ceo-and-co-founder-brian-armstrong-to-coinbase-employees\">According to a blog article<\/a>\u00a0Written by Brian Armstrong (CEO), Jan. 11.<\/p>\n<p>According to the blog post, the company would send emails to the employees affected regarding their personal accounts and will revoke access from company systems.<\/p>\n<p><span id=\"SpecialReportArticle-QuoteInBody-1\" class=\"QuoteInBody-quoteNameContainer\">Coinbase had<\/span>\u00a0already\u00a0slashed\u00a018 percent of its workforce last June in a bid to save on operational costs, with roughly 4,700 employees remaining at the end of September after the cuts.<\/p>\n<p>The new layoffs will result in reduced expenses of $149\u2013163 million for the first quarter of 2023, said the company\u2019s CEO.<\/p>\n<p>This, along with other restructuring actions, would reduce operating expenses by 25%.<\/p>\n<p>Armstrong added that Armstrong had also mentioned that Armstrong was involved in many projects. \u201clower probability of success\u201d The site would be taken down.<\/p>\n<p>The exchange expects 2023 adjusted earnings before interest tax, depreciation, amortization and amortization losses (EBITDA), to remain within $500 million. \u201cguardrail\u201d Set last year.<\/p>\n<h2>Coinbase CEO says Crypto will Survive the New Crisis<\/h2>\n<div class=\"group\">\n<p>He also blamed recent crypto sector pressure on \u201cunscrupulous actors in the industry,\u201d FTX and its disgraced founder Sam Bankman Fried are the two.<\/p>\n<p>The industry was rocked following the\u00a0collapse\u00a0of FTX, one the industry\u2019s biggest players, in an $8 billion fraud scheme and the subsequent investigation by the U.S. Department of Justice and the Securities and Exchange Commission (SEC).<\/p>\n<\/div>\n<p>Armstrong claimed that Coinbase would benefit from the collapse in FTX since it is no longer the largest competitor.<\/p>\n<p>\u201cCoinbase is well capitalized, and crypto isn\u2019t going anywhere. In fact, I believe recent events will ultimately end up benefiting Coinbase greatly (a large competitor failing, emerging regulatory clarity, etc.), and they validate our long-term strategy,\u201d Armstrong said.<\/p>\n<p>He said that a focus on better crypto regulations and oversight would validate the company\u2019s decision on going public.<\/p>\n<p>Despite the recent bankruptcies of Voyager Digital, FTX and other crypto trading companies, Coinbase CEO John C. Smith insists that the industry isn&#8217;t going anywhere. He compared the situation to that of the dot.com boom in the early 2000s.<\/p>\n<p>\u201cJust like we saw with the internet, the most important companies not only survive but thrive during down markets by being rigorous with cost management, and continuing to build innovative products,\u201d Armstrong noted.<\/p>\n<h2>The Market remains volatile, and Crypto continues to fall dramatically last year<\/h2>\n<p>As traders abandon riskier investments during a global economic downturn, cryptocurrencies have also suffered.<\/p>\n<p>Bitcoin lost 58 per cent of its value over the past year while Coinbase shares fell more than 83%.<\/p>\n<p>After Coinbase went public in April 2021, its share price has since plummeted, with the stock trading below $40, after\u00a0surging as high as $429.54 on the day of its debut on the Nasdaq<a href=\"https:\/\/www.cnbc.com\/2023\/01\/10\/coinbase-to-slash-20percent-of-workforce-in-second-major-round-of-job-cuts.html\">, reported CNBC.<\/a><\/p>\n<p>Coinbase\u2019s debt-holders saw their bonds, which mature in 2031, trade near $0.50 on the dollar following the collapse of FTX.<\/p>\n<p>At the end of the third quarter, the crypto company still had approximately $5 billion in cash and equivalents.<\/p>\n<p>After reviewing multiple scenarios for the company\u2019s annual revenue estimates, Armstrong said, \u201cIt became clear that we would need to reduce expenses to increase our chances of doing well in every scenario\u201d That was all there was \u201cno way\u201d You can do it without having to reduce your headcount.<\/p>\n<h2>Big Tech and Crypto Firms Experience Massive Job Losses<\/h2>\n<p>Coinbase was among other tech companies to announce the acquisition <a href=\"https:\/\/www.theepochtimes.com\/t-job-cuts\">Job cuts<\/a>, after many firms went on a hiring spree during the\u00a0pandemic.<\/p>\n<p>Armstrong acknowledged that Armstrong <a href=\"https:\/\/www.theepochtimes.com\/t-crypto-exchange\">crypto exchange<\/a> Had grown \u201ctoo quickly\u201d During the bull market, I was too optimistic.<\/p>\n<p>\u201cOver the past 10 years, we, along with most tech companies, became too focused on growing headcount as a metric for success. Especially in this economic environment, it\u2019s important to shift our focus to operational efficiency,\u201d Armstrong said.<\/p>\n<p>Coinbase had\u00a0<a href=\"https:\/\/blog.coinbase.com\/coinbase-plans-to-add-2-000-employees-across-product-engineering-and-design-in-2022-bcea30164051\" target=\"_blank\" rel=\"noopener\">Plans for February 2022<\/a>\u00a0It will add 2,000 new jobs in its product, engineering, design, and support team.<\/p>\n<p>Armstrong stated that he wants the company to succeed. \u201creturn to small, nimble teams that are able to get more done\u201d\u00a0\u00a0and can move quickly, as they return to their start-up roots.<\/p>\n<p><span id=\"SpecialReportArticle-QuoteInBody-6\" class=\"QuoteInBody-quoteNameContainer\">Amazon continues to be a great resource.<\/span>\u00a0said it would cut\u00a018,000 jobs\u00a0last week,\u00a0more than initially planned, wrote CEO Andy Jassy in the <a href=\"https:\/\/www.aboutamazon.com\/news\/company-news\/update-from-ceo-andy-jassy-on-role-eliminations\">company\u2019s\u00a0blog. <\/a><\/p>\n<p><span id=\"SpecialReportArticle-QuoteInBody-8\" class=\"QuoteInBody-quoteNameContainer\">Salesforce also announced that it would reduce its staff<\/span>\u00a0By more than 7,000 or 10% in a <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1108524\/000110852423000003\/ex991-lettertoemployees.htm\">Filing with the SEC by January 4.\u00a0<\/a><\/p>\n<p>Twitter&#8217;s CEO Elon Musk last year saw at least 50% of its employees be fired.\u00a0<span id=\"SpecialReportArticle-QuoteInBody-11\" class=\"QuoteInBody-quoteNameContainer\">Meta<\/span>\u00a0terminated more than\u00a011,000 positions, or 13 percent of its staff.<\/p>\n<p>The downturn in crypto and tech has also led to the reduction of staff at Kraken, Gemini, and Genesis Crypto Firms.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-bryan-jung\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/ttl7daySGw_WEB_BrianJung.jpg\" alt=\"Bryan Jung\"   style=\"display:none\"><\/a>\n\t\t\t\t\t<\/div>\n<p>Bryan S. Jung, a New York City native and resident, has a background in politics as well as the legal industry. He graduated from Binghamton University.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase will reduce a fifth its workforce after a June 2022 staff reduction. This is in an effort to preserve its assets in the face of a severe downturn in the crypto industry. In recent months, some of Silicon Valley&#8217;s largest companies have been making steady job cuts announcements. The company plans to cut around &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1695376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[5458,13591,9677,7970,3819,9848],"class_list":["post-1804433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bongino","tag-coinbase","tag-cut","tag-layoffs","tag-report","tag-workforce"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1804433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1804433"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1804433\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695376"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1804433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1804433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1804433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}