Get All Access for $5/mo

Coinbase CEO Says 'I Am Sorry' in Memo Laying Off Over 1,000 Employees Amid economic turmoil, the company laid off 18% of its staff and extended a hiring pause.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

It's a brutal time for crypto, and with anticipation of a harsh "crypto winter," companies are doing what they can to minimize the damage.

The digital currency market has steadily tanked amid inflation and economic uncertainty — this week, bitcoin dipped to its lowest point since 2020. As the crypto space continues to face market obstacles, Coinbase CEO Brian Armstrong made the executive decision to cut staff by 18% to ensure that the company stays "healthy during this economic downturn" — and laying off over 1,000 of the approximate 3,700 employees in the process.

"I am the CEO, and the buck stops with me," Armstrong wrote in a message to staff.

Related: Can Coinbase Turn Things Around in 2022?

The memo names contributing factors to the massive layoffs, some in Armstrong's control (the mistake of overhiring and growing too quickly in 2021) and some out (changing economic conditions). Armstrong writes that the company needed to be more cautious about managing its funds to ensure it survives the "crypto winter."

"To our colleagues who are departing, I want to say thank you for giving everything to this company, and that I am sorry," he writes.

The affected Coinbase employees will receive 14 weeks of severance plus two additional weeks for every year of employment over a year, four months of health insurance, and access to Talent Hub, where members of Coinbase's team can connect individuals to open positions at other firms.

Related: Crypto Giant Begins Rescinding Offers Amid Hiring Freeze as Market Continues to Tumble

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Some Car Dealerships Are Selling Cars the Old Fashioned Way Following Massive Cyberattack

CDK software services an estimated 15,000 dealerships in the U.S.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

50 Cent Once Sued Taco Bell for $4 Million. Here's How the Fast-Food Giant Got on the Rapper's Bad Side.

The brand suggested that 50 Cent change his name to match its "Why Pay More?" value menu promotion prices. The rapper was not amused.

Business News

Apple Is Working on Making Its $3,499 Vision Pro More Affordable — and Mainstream. Here's How.

Apple's product is at least three times more expensive than Meta's version.

Business News

Jack Dorsey Says It Will Soon Be 'Impossible to Tell' if Deepfakes Are Real: 'Like You're in a Simulation'

Dorsey said we will "not know what is real and what is fake" in the next five to 10 years.

Business News

Mark Cuban's Google Account Was Hacked By 'Sophisticated' Bad Actors

The "Shark Tank" star said someone "called and said I had an intruder and spoofed [Google's] recovery methods."