Like Elon Musk, Coinbase to sack over 1,000 workers amid faceoff with top executives

The third-largest cryptocurrency exchange, Coinbase, has announced that 1,100 employees will be sacked from their positions before the end of 2022, joining Tesla on the list of companies downsizing their workforce in response to projected recession in the United States.

Coinbase Chief Executive Officer, Brian Armstrong, said after over 10 years of economic boom, the U.S is heading towards a recession, which would usher in crypto winter, and in order to withstand the period, the company has to cut 18% of its jobs.

He disclosed in a statement on Tuesday, that trading revenue has declined significantly, explaining that Coinbase has grown too quick in recent years, leading to an increase in workforce, which is now too costly for the firm “to effectively manage this uncertain market.”

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period.” Armstrong said in the statement.

The massive sack comes amid a faceoff between workers and senior executives at Coinbase, following accusations by the former, that the executives’ decisions are hindering the growth of the crypto exchange.

Read also: Coinbase CEO conducts IPO to prove Godwin Emefiele, CBN, others wrong

In a petition issued by the workers, they called for the sack of the following; Chief People Officer, LJ Brock, Chief Product Officer, Surojit Chatterjee, and Chief Operating Officer, Emilie Choi – the request was publicly criticised by Armstrong on June 10, via Twitter platform.

Prior to the announcement, Tesla had also embarked on layoffs at the electric carmaker, after its major shareholder and Chief Executive Officer, Elon Musk, directed the sack of over 9,000 workers, just after threatening to disengage staff that still work-from-home without his approval.

Musk had also predicted that the U.S economy was heading for a downturn.

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