Coinbase CEO, Brian Armstrong, has reportedly just filed an 8-K with the U.S. Securities and Exchange Commission (SEC). He opts to also share the message publicly. Armstrong expects the contagion led by the “unscrupulous actors” to continue for a while. He assures that Coinbase is “well capitalized.” With regulatory clarity incoming, Armstrong assures crypto is here to stay.
Stressing upon the right operational efficiency to thwart crypto market downturns, the Coinbase CEO announces a 25% Q/Q cut in operating expenses. The Q4 earnings call scheduled for February would also detail Coinbase’s expense outlook, says the CEO. The projects closing down due to the layoff would be the ones having a low success probability.
To protect customer information, Coinbase system access has been removed for the affected team members. The laid-off staff are reportedly scheduled for a meeting with an HRBP and a senior leader. A comprehensive package to support the affected staff for their smooth transition is also announced.
The laid-off staff in the U.S. would receive as a support package including
a minimum of 14 weeks base pay (2 additional weeks per year worked), health insurance, and other benefits.
The laid-off team members on a work visa in the U.S. are reportedly poised to receive an “extra transition support.” Team members facing a lay-off and are outside the U.S. would get a “similar support in line with the employment laws” in their country. Access to Coinbase’s Talent Hub is provided to the affected staff to assist in connecting with the “next career opportunity” in a challenging job market.
Moving forward, while optimistic for the future of crypto, Brian Armstrong aims to have a “rigorous” stance for cost management. Coinbase will continue building innovative products, the CEO assures.
