Crypto layoffs loom as tokens crash: Coinbase, Crypto.com, and others cut staff

Layoff announcements at crypto-focused firms are piling up this week in the wake of a crash that has seen the value of major cryptocurrencies tumble significantly over the last few days. Here are some of the companies that have said they are cutting staff:

• Coinbase: Brian Armstrong, the company’s cofounder and CEO, said in a blog post Tuesday that Coinbase will cut about 18% of its workforce. According to its website, the company has about 4,900 employees, meaning almost 900 could be affected. Coinbase went public last year in one of the hottest IPOs of 2021, but shares of its stock have fallen dramatically since their peak, and are down about 80% year to date. In his post, Armstrong cited economic conditions and the possibility of another “crypto winter” among the reasons for the cuts. He also said, “We grew too quickly.”
• BlockFi: The crypto lending platform said on Monday it would be cutting staff by about 20%. According to a Twitter thread by CEO Zac Prince, it looks to be a similar case of growing too fast. BlockFi has about 850 employees, up from 150 at the end of 2020, Prince tweeted.
• Crypto.com: On Friday, the company said it would be cutting staff by 5%, or roughly 260 employees. Kris Marszalek, Crypto.com’s CEO, said in a tweet that the cuts will allow the company to “stay focused on executing against our roadmap and optimizing for profitability as we do so.” Crypto.com, you might recall, recently received criticism for an advertising spot in which Matt Damon encouraged viewers to invest in cryptocurrencies. “Fortune favors the bold,” went the tagline.

According to Reuters, the value of the cryptocurrency market dipped below $1 trillion for the first time since early 2021 on Monday. That’s compared to a peak of about $2.9 trillion at the end of last year.

This story is developing . . .