Coinbase To Wind Up Operations In Japan Following Crypto Winter?

Coinbase Global Inc has decided to cut down its employees in Japan, citing the reason of extreme market conditions, as a part of laying off 20% of the global workforce.

The spokesperson for Japan’s Coinbase unit said in a statement, “Due to the current market conditions, our company has made the difficult decision to reduce our workforce in Japan,” reported Bloomberg. The number of employees being slashed has not been mentioned.

There are no further details on the timeline or who will be fired. The employees who will be laid off will be getting a “comprehensive transition package” to help them deal with the situation. “No decisions have been made at this time beyond the reduction in workforce, we are carefully evaluating all options and will communicate any further updates as they become available.” the spokesperson added

CEO Justifies Coinbase Layoffs

The U.S.-based crypto exchange is headquartered in San Francisco. The announcement of laying off its 950 employees broke out yesterday. The Chief Executive Officer, Brian Armstrong stated that the layoffs were necessary to deal with the global headwinds that the crypto market is facing. The projects that are not showing high productivity and have lower scopes will be shut down.

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The laying off trend amid crypto winter?

Coinbase has been laying off employees in massive numbers since last year June. it laid off 18% of its employees which was about 1200 people. In November they removed 60 employees.

The crypto market had the worst year in 2022, the market was extremely tumultuous following collapses. The price of tokens kept falling down as significant coins reached their lowest since 2020. The latest and biggest of all was the collapse of the leading exchange FTX, which shook the market for a long time.

Also read: Voyager-Binance Deal: Customers To Recover 51% Of Pre-Bankruptcy Crypto Assets