Cryptocurrency exchange Coinbase Global (COIN) is laying off 18% of its workforce due to deteriorating market conditions and as a “crypto winter” grips the industry.
The layoffs are a reversal for Coinbase, which hired aggressively as the price of Bitcoin (BTC) and other digital assets rose in recent years. At the start of this year, Coinbase’s workforce stood at 1,200 employees.
Earlier this month, Coinbase announced that it is rescinding recently made employment offers. The company’s stock has fallen 80% this year as the cryptocurrency market has collapsed and now trades at $51.58 U.S. per share.
Coinbase, which is the largest cryptocurrency exchange in the U.S. is following other crypto-related businesses that have announced staff cuts in recent weeks, including fellow exchange Gemini Trust and lender BlockFi, both of which cited the arrival of a “crypto winter,” or prolonged downturn, as the reason for the headcount reductions.
The slide in cryptocurrencies began soon after Bitcoin hit its all-time-high of $68,000 U.S. last November. This week, the selloff in digital coins accelerated after cryptocurrency lender Celsius halted withdrawals from all of its accounts, citing market volatility.
