Cryptocurrencies are going through a shocking moment right now. Bitcoin price (BTC (opens in new tab)), Ethereum (ETH (opens in new tab)), and others have fallen to the lowest level in the last two years, and the overall outlook is also bleak. There are real repercussions coming from this digital turmoil, and you need look no further than Coinbase (opens in new tab) for proof.
1/ Today I shared that I made the difficult decision to reduce the size of our team at Coinbase by around 18%. The broader market downturn means we need to be more mindful of costs as we approach a potential recession.June 14, 2022
Co-founder and CEO of Coinbase Brian Armstrong (opens in new tab) went to Twitter (via On the edge (opens in new tab)) to announce that the company will “reduce the size of our team by about 18% to ensure we stay healthy during the economic downturn”. This 18% equates to about 1,100 employees.
Armstrong goes on to say that this was partly due to expanding so rapidly over the last couple of years and that it wasn’t operating as efficiently due to the new size. That’s a harsh reality for the affected team, who apparently found out via email when the company “made the decision to cut off access to Coinbase systems for affected employees.”
On a blog he links to from his tweet (opens in new tab), Armstrong suggests that we are entering a recession and that another crypto winter was imminent. Having weathered crypto winters before, where trading revenues dropped significantly, he sees these layoffs as the best way to prepare for what’s to come. The layoffs come just a week or so after Coinbase made news for rescinding job offers it had made to multiple candidates as the cryptocurrency market began to plummet.
From a gaming perspective, cryptocurrencies have been a big issue, responsible for driving up graphics card prices and making it almost impossible to buy things like the RTX 3080. So while the price drop could free up cards, news from people losing your jobs is never welcome.