Crypto exchange Coinbase wants to reduce almost a fifth of her staff

The crypto exchange Coinbase plans to reduce almost a fifth of its workforce, which is the latest sign that the market for digital assets cools down in view of falling token prices.

The plans of the group listed in the USA to reduce its staff by 1,100 employees come because a strong downturn at the cryptom market threatens to take a difficult blow to take a difficult blow.

Bitcoin has lost more than 60 percent of its value since it reached an all -time high of almost $ 69,000 last November and fell under $ 21,000 on Tuesday. Other companies, including the competing stock exchange Gemini from Coinbase, Crypto.com and the Krypto credit platform Blockfi, have also announced plans in recent weeks to dismiss large parts of their workforce. Before the announcement of Tuesday, Coinbase had also withdrawn existing vacancies and referred to the rapidly changing market conditions.

Brian Armstrong, Chief Executive from Coinbase, said the group made the decision to "stay healthy during this economic downturn". In the first quarter, the group achieved about four fifths of their revenue from retail - something that cooled down dramatically when crypto prices sank.

In the announcement of Tuesday, Armstrong said: "I'm the CEO and the money stays with me." He admitted that Coinbase had "grown too quickly" in the face of the wider bull run of the cryptom market last year.

"It is a challenge to grow exactly at the right pace given the extent of our growth. While we tried our best to do this right, in this case it is now clear to me that we have hired too much," he said.

Coinbase had already slowed down the number of attitudes in May. In the same month, the group announced a net loss of $ 430 million for the first quarter. The shares of Coinbase have so far broken up by 79 percent this year.

In a separate blog, Armstrong said that affected employees would receive a notification by personal email, since the company had already decided to block their access to coinbase systems.

Coinbase expects restructuring costs of around $ 40 to $ 45 million in connection with the layoffs, the group announced in an official application. Employees who were dismissed by the stock exchange will receive a severance payment and certain health services for at least 14 weeks.