Cryptocurrency exchange Coinbase Global is laying off about 18 per cent of its workforce amid a steep decline in the prices of digital tokens and a wider stock market sell-off.
“Today I am making the difficult decision to reduce the size of our team by about 18 per cent to ensure we stay healthy during this economic downturn,” Coinbase chief executive and co-founder Brian Armstrong said in an email to employees, which was posted on the company's blog on Tuesday.
“I take accountability for how we got here. I am the CEO, and the buck stops with me.”
Cryptocurrencies have recorded a steep decline amid negative investor sentiment over fears of bigger US Federal Reserve interest rate increases to tame rising inflation.
On Monday, Bitcoin shed as much as 10 per cent to reach $20,824, its lowest level since December 2020. Since then, it has pared some of the losses and was trading at $22,073 as of 5.45pm UAE time on Tuesday. Ether continues to nurse losses and was trading at $1,212.81, while tokens such as Solana, Cardano and Avalanche have returned to positive territory, according to Coinbase.com.
“Sentiment for cryptos is terrible as the global crypto market cap has fallen below $1 trillion,” said Edward Moya, senior market analyst at Oanda.
A drop below the $20,000 level could lead to “even uglier” price action, he added.
The move by cryptocurrency lender Celsius to freeze withdrawals on Monday exacerbated worries about the stress in the digital asset sector, which was already on tenterhooks after the collapse of the Terra/Luna ecosystem.
Mr Armstrong blamed fears of a looming recession, a need to manage spending and increase efficiency, and over-hiring as the main reasons to lay off Coinbase employees, after holding consultations with the executive team and board over the past month.
“We appear to be entering a recession after a 10-plus year economic boom. A recession could lead to another crypto winter and could last for an extended period,” Mr Armstrong said.
“In past crypto winters, trading revenue has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
San Francisco-based Coinbase had 1,250 employees at the beginning of 2021 during “the early innings of the bull run and adoption of cryptocurrency products was exploding”, he said.
“We saw the opportunities, but we needed to massively scale our team to be positioned to compete in a broad array of bets. While we tried our best to get this just right, in this case it is now clear to me that we over-hired,” Mr Armstrong said.
He explained away laying off employees to “ensure we can successfully navigate a prolonged downturn”.
“Our team has grown very quickly [more than four times in the past 18 months] and our employee costs are too high to effectively manage this uncertain market. The actions we are taking today will allow us to more confidently manage through this period even if it is severely prolonged,” he said.
The resourcing changes being made will allow Coinbase to become more efficient, according to his email.
All affected employees will have their access to Coinbase networks cut off.
“Given the number of employees who have access to sensitive customer information, it was unfortunately the only practical choice to ensure not even a single person made a rash decision that harmed the business or themselves,” Mr Armstrong said.
Employees who were laid off will receive 14 weeks of severance pay and an additional two weeks for every year of employment beyond one year. They are also entitled to four months of health insurance in the US and four months of mental health support globally.
They will receive an invitation to have a direct conversation with an HR business partner and a senior leader in the organisation.
The employees will also have access to a talent hub to find new jobs in the industry, including Coinbase Ventures’ portfolio companies, the email added.
“I realise it may take longer in this environment to find new employment and so my hope is that this financial and non-financial assistance helps make this unexpected transition for you as seamless as possible,” Mr Armstrong said.
“To our colleagues who are departing, I want to say thank you for giving everything to this company and that I am sorry. I hope that as we grow again, we get a chance to hire you back. We would not be where we are today without your hard work and dedication.”
He told existing employees that the company “made these hard decisions” to ensure their future is bright.
KILLING OF QASSEM SULEIMANI
UAE currency: the story behind the money in your pockets
WORLD RECORD FEES FOR GOALKEEPERS
1) Kepa Arrizabalaga, Athletic Bilbao to Chelsea (£72m)
2) Alisson, Roma to Liverpool (£67m)
3) Ederson, Benfica to Manchester City (£35m)
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5) Angelo Peruzzi, Inter Milan to Lazio (£15.7m
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- Priority access to new homes from participating developers
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
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Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
TALE OF THE TAPE
Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm
Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm
MATCH INFO
Manchester City 2 (Mahrez 04', Ake 84')
Leicester City 5 (Vardy 37' pen, 54', 58' pen, Maddison 77', Tielemans 88' pen)
Man of the match: Jamie Vardy (Leicester City)
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The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
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Price: Dh136,814
HOW TO WATCH
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MORE ON TURKEY'S SYRIA OFFENCE
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INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
Tips for job-seekers
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- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
Federer's 11 Wimbledon finals
2003 Beat Mark Philippoussis
2004 Beat Andy Roddick
2005 Beat Andy Roddick
2006 Beat Rafael Nadal
2007 Beat Rafael Nadal
2008 Lost to Rafael Nadal
2009 Beat Andy Roddick
2012 Beat Andy Murray
2014 Lost to Novak Djokovic
2015 Lost to Novak Djokovic
2017 Beat Marin Cilic
