The crypto exchange platform, Coinbase laid off about 18% or 1,000 of its employees as the crypto currency market continued to fall.
Chief Executive Officer Brian Armstrong said in an open letter on Tuesday that the company had to make such ‘tough decisions’ to ensure they remained safe during the uncertainties in the current economy.
He also warned that the growing risk of an economic recession could lead to continued ‘bearish’ in the crypto market.
While Armstrong says it is difficult to predict future economic conditions, the company has prepared itself to face any eventuality.
Earlier this month, the firm had announced to freeze hiring as it struggled with the current economic situation. The recent downturn in the market has definitely added more pressure for Coinbase to have to take this decision.
Coinbase’s market value has plummeted following widespread sell -off by crypto investors to bail out riskier assets following expectations of a larger increase in interest rates by the U.S. central bank to tackle inflation.
The king of cryptocurrencies, Bitcoin (BTC) has lost over 50% of its recorded profits since it rose to an all -time high in November 2021.
At the time of writing, the BTC is trading gloomily at around $ 21,000 as the focus of all investors is directed to the FOMC policy meeting early this morning.
