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.
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Killing of Qassem Suleimani
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
More on Quran memorisation:
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3C%2Fstrong%3E%3A%20ASI%20(formerly%20DigestAI)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Quddus%20Pativada%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Artificial%20intelligence%2C%20education%20technology%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%243%20million-plus%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GSV%20Ventures%2C%20Character%2C%20Mark%20Cuban%3C%2Fp%3E%0A
Killing of Qassem Suleimani
MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
DUBAI%20BLING%3A%20EPISODE%201
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3ENetflix%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EKris%20Fade%2C%20Ebraheem%20Al%20Samadi%2C%20Zeina%20Khoury%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
The Bio
Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride
She is the eldest of 11 children, and has four brothers and six sisters.
Her dream is to meet with all of her friends online from around the world who supported her work throughout the years
Her favourite meal is pizza and stuffed vine leaves
She ams to improve her English and learn Japanese, which many animated programmes originate in
LIST OF INVITEES
Shergo Kurdi (am)
Rayhan Thomas
Saud Al Sharee (am)
Min Woo Lee
Todd Clements
Matthew Jordan
AbdulRahman Al Mansour (am)
Matteo Manassero
Alfie Plant
Othman Al Mulla
Shaun Norris
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
