Crypto exchange Coinbase lays off 1,100 people

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The CEO of one of the largest cryptocurrency exchanges in the world, Coinbase, has announced large staff cuts amid the digital currency market crisis.

Brian Armstrong said on the company's blog that the exchange will cut 1,100 employees.A possible recession, according to the CEO, could lead to a new crypto winter and last for a long time.

Armstrong, explaining the reasons for the cuts, referred to the need to prepare for the worst and stated that during the rise of the cryptocurrency markets, the company expanded too quickly.

"It's clear to me now that we've hired too many employees," the head of Coinbase justifies.

The crypto exchange's biggest source of revenue is trading fees, which dropped a lot during the previous market correction, and the company doesn't want toIn its earnings report for the first quarter of the year, Coinbase reported revenue of $1.7 billion, down 35% from that yearThe company recorded a quarterly loss of $429 million in net profit.

According to today's report filed by the crypto exchange with the U.S. Securities and Exchange Commission (SEC), Coinbase expectsBy the end of June, about 5,000 employees will remain in the state, which will cost the company from$40 million to $45 million, including severance payments and other benefits.The valuation does not include stock-based compensation that maydemand by some workers.

According to Armstrong, in the past 18 months, the company's personnel costs have been exceeded by more than four times.

Previously, the company announced that it would extend the moratorium on staff expansion, and also refuse employees who have already received positions but have not yet started working.