Coinbase cut 18% of it’s staff

U.S. cryptocurrency exchange Coinbase will lay off about 1,100 people, or 18% of its entire staff, CEO Brian Armstrong said. The reorganization is carried out to preserve the stability of the business during the economic downturn. According to Armstrong, the industry is entering a recession, which will lead to a long-term “Crypto-Winter”.

“We have seen ourselves slow down considerably due to coordination headwinds, and difficulty fully integrating new team members. We believe the targeted resourcing changes we are making today will allow our organization to become more efficient,” the Coinbase founder wrote.

The company will spend about $45 million to reduce headcount. Coinbase plans to complete the reorganization this summer. Employees who make the cut will receive severance pay of 14 weeks or more and receive COBRA medical coverage in the U.S. Data from platf​orm cryptodefix.com. and psychological counseling around the world.