U.S. bitcoin exchange Coinbase will cut its staff by about 18 percent due to the onset of the cryptozyma.
Co-founder and CEO Brian Armstrong called it a “difficult decision.”
“A broader market downturn means we need to be more mindful of costs as we approach a potential recession,” he wrote.
Armstrong noted that the company’s workforce has more than quadrupled in the past 18 months. Growing too fast has led to problems coordinating and integrating new team members, making it less efficient.
Affected employees who have been downsized will be notified by personal messages. They will be immediately denied access to confidential customer information.
“I understand that removing access will be sudden and unexpected, and this is not the experience I wished for you. […] Unfortunately, it was the only practical choice to ensure that no one would make a rash decision that would harm the business or him,” Armstrong explained.
Fired employees will be compensated by the exchange at 14 weeks’ salary with bonuses for more than one year’s work. Coinbase will also pay for four months of health insurance and provide assistance with future employment, including with portfolio companies in the venture capital division.
Coinbase has about 5,000 full-time employees. Layoffs will affect approximately 1,100 of them.