Posted: Fri 11/11/22 10:32AM Update
San Francisco: Leading cryptocurrency exchange Coinbase will soon lay off more employees in a new round of layoffs, as the cryptocurrency world faces another existential threat in the wake of the FTX crash, according to media reports.
The layoffs were announced internally, and the company could lay off about 60 employees across its recruiting and agency onboarding teams, The Information reported.
The cut will happen as the broader crypto industry is thrown into disarray as the ongoing FTX saga raises alarms among investors and causes the value of the cryptocurrency to fall further.
Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, told investors he needed emergency funds to cover a shortfall of up to $8 billion due to withdrawal requests he received in recent days.
Leading cryptocurrency exchange Binance also pulled out of the FTX acquisition deal.
Even before the FTX issue, Coinbase was trying to rein in costs, as declining crypto trading volumes are hurting revenue this year, the report said.
In June, the cryptocurrency exchange company announced 18% layoffs, or about 1,100 jobs, amid the economic downturn.
CEO and co-founder Brian Armstrong has said that while the company does its best to do this, in this case it’s clear it’s overhiring.
Now, the collapse of the FTX cryptocurrency exchange presents another round of threats to the entire cryptocurrency industry amid a further decline in the value of Bitcoin and other cryptocurrencies.