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.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.