Topic: Coinbase to Lay Off 18% of Workers - page 2. (Read 326 times)

This is now a bothering pattern among crypto-related companies. Surely, the bear market did not force them to deactivate certain features or pull out certain services from their platforms. But with the laying off of a significant number of workers, it could mean a poorer service.

I'm also thinking of Coinbase's loan from Goldman Sachs. Their Bitcoin collateral must have already fallen from its value and additional collateral must have already been demanded from the exchange.

Dismissals are a common thing in almost every companies of the industry during this weak market due to the volume of money and number of customers decreasing. It's not needed and profitable to keep the same number of employees to attend a reduced number of customers. In my country the same is happening and it's understandable businessmen act like this. Next bull run cycle these businesses start hiring again.

What has been happening on the crypto market is a reflection of the financial market in general - the market is in a bear / down trend. Do take in consideration that some events in the crypto world are just pure extreme examples, such as the LUNA event, but indeed these are not easy times for the companies.

Big VC companies, such as Sequoia Capital and YCombinator, already warned[1][2] that they'll reduce the investment frenzy that has been seen in the past years, mostly due to the lackluster behavior of many tech companies in the past months (such as Netflix f.e). Since the business model of these kind of tech companies mostly relies on burning cash fast in order to expand (and then later deal with the pain of growing too quickly), they are now facing a problem where funding is uncertain which makes them having reduce costs in the short therm by mostly cutting jobs (see for example Glovo[3], Klarna[4] or even Netflix[5] (more complete list can be seen here[6])).

If this happens in the tech market, for sure considering the whole crypto market status and especially the way that Crypto.com evolved to the brand that is today (by a mix of really strong advertising (burning huge amounts of money) + their credit card cashback program (now slashed)), this kind of approach is expected. Let's just hope that remaining companies (tech and crypto) are able to sustain current market conditions ...

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[1]https://news.crunchbase.com/business/sequoia-warning-founders/
[2]https://news.crunchbase.com/venture/y-combinator-startup-warning-letter-downturn-2022/
[3]https://sifted.eu/articles/glovo-foodpanda-layoffs/
[4]https://techcrunch.com/2022/05/23/klarna-lays-off-10-of-its-workforce/
[5]https://www.bbc.com/news/business-61489041
[6]https://news.crunchbase.com/startups/tech-layoffs-2022/

People really didn't expect it will go down til 20k. But after the war broke and sanctions started to put on russia from everywhere, this began, not just crypto but the almost all market are affected.

While in the other hand, it's an opportunity to bought more in this dip.

Crypto winter is coming for sure, and it's never a good idea to hold any coins on centralized exchanges, or in fake dex and in yield earning platforms semi-scams.
I saw this news about Coinbase workers, I also think that Crypto.com also announced something similar, and one Bisq fork dex announced they are stopping development because market crashed
This is more or less expected, and it is not only related with Bitcoin crash, whole economy is like Titanic ship that is currently crashing, and I think this looks like it was intentional plan :/

Crypto.com says it will lay off 260 employees, joining the downsizing wave hitting crypto exchanges
https://www.businessinsider.com/cryptocom-layoffs-260-workers-5-percent-employees-announcement-2022-6

Just buy btc and withdrawal it as fast as possible.

As coinbase announced few  time ago, they can take our funds if they are insolvent.

 https://blog.coinbase.com/setting-the-record-straight-your-funds-are-safe-at-coinbase-and-always-will-be-f8cf2b588fd8

I am afraid of usdc as well, I have some..

A layoff - particularly in an "at-will" technology job - is not something to fear, it's something to expect and be ready for.

On the bright side, there's a new paragraph in the resume for the next job.

Well this is necessary if they really want to survive on this bear season. They have most of there assets in crypto while the profit from fees is on crypto too which is now plummeting non-stop. There are some reports on twitter that Bitcoin withdawal on coinbase has a delay a certain days while withdrawing to bank will take much more longer(can't get anymore the source).

Working on this huge giant company is indeed very scary if you are a regular employee that just want to have a happy job on crypto.

NOW you're telling me... I just shoveled more worthless fiat to Coinbase to buy the dip LOL

So long as they don't fire the 1 person working for customer support.

Makes me wonder how many of these were / are and I don't have an exact way to put this. "Needed layoffs but we didn't have a reason" other then we don't have something for you to do today.
Many companies shrink staff when projects are finished or when growth slows. Tech companies, don't always do this but look for 'a reason' to shrink staffing.

It would be a lot tougher to go to staff last year when BTC & crypto were booming and tell them you are laying people off because they are not needed.
Now with everything plummeting in price and all the losses, it's easier to show people the door.

-Dave

Cryptocurrency related business are clearly having financial problems now. Although there is some spike in trading volume when there is a high volatility,  the bear market is much worse for exchanges than a bull market.

This is the time to withdrawal all the funds you have on exchanges. They might have financial problems.