CNBC headline: Coinbase lays off 18% of workforce as executives prepare for recession and ‘crypto winter’
PUBLISHED TUE, JUN 14 20228:15 AM EDTUPDATED 3 HOURS AGO
https://www.cnbc.com/2022/06/14/coinbase-lays-off-18percent-…
The news comes during a deep rout for Coinbase shares. The stock went public via a direct listing last April during a boom in crypto markets and investors clamoring for high-growth tech stocks. Coinbase’s shares are down 79% this year and 85% from the all-time high. Meanwhile, bitcoin has dropped to near $22,000 and has lost 53% of its value this year.
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San Francisco-based Coinbase reported a slump in users in its last quarter and a 27% decline in revenue from a year ago. The company gets the majority of its top line from transaction fees, which are closely tied to trading activity.
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Coinbase joins dozens of other tech and crypto companies slamming the brakes on hiring. Crypto lender BlockFi said Monday it was cutting 20% of its employees. Open-source tracker Layoffs.fyi estimates that more than 5,500 start-up and tech jobs have been cut in June alone.