The meltdown of FTX and the consecutive crash of the crypto market triggered additional layoffs in Coinbase.
The US-based cryptocurrency exchange – Coinbase – reportedly reduced its team by 60 people following the FTX saga and the consecutive plunge of the market.
Chief Financial Officer Alesia Haas said the company might lay off more people should the turmoil deepen in the future.
CFO Alesia Haas described the amendments as “surgical” actions that aim to reduce costs during challenging times.
“If we see that there is going to be further depressed revenue, and if we believe this is going to impact beyond the scenarios we have already planned for, we will have to take further cost-saving action,” she added.
Coinbase launched its dismissal spree in June when it reduced its total workforce by 18%. CEO Brian Armstrong suggested that the economy appears to be entering into recession after over a decade of financial boom, which is why the firm reorganized its expenses.
Several other exchanges have taken such measures over the past several months, including CryptoCom, Gemini, Bybit, Huobi, and more.
The crypto winter, which reigns for the bigger part of 2022, seemed to have loosened its grip last week when bitcoin was trading at around $21,500, while the market capitalization was above $1 billion.
However, FTX’s collapse this week vaporized hopes that the start of a new bull run is near. The crypto market cap dropped below $850 billion at some point, with bitcoin plunging to a two-year low of approximately $15,500.