Coinbase is laying off almost a fifth of its workforce amid a collapse in its stock and crypto prices.
The cryptocurrency exchange will cut 18 percent of full-time jobs, according to an email sent to employees Tuesday morning.
Coinbase has roughly 5,000 full-time workers, translating to a head count reduction of around 1,100 people. Shares of Coinbase were down about 75 basis points at 12:15 ET on Tuesday.
CEO Brian Armstrong pointed to a possible recession, and a need to manage Coinbase’s burn rate and increase efficiency.
He also said the company grew “too quickly” during a bull market. “We appear to be entering a recession after a 10+ year economic boom.
Coinbase had initially said it was pausing hiring. Two weeks later, the crypto giant announced that it was extending the freeze for the “foreseeable future.”
“Our employee costs are too high to effectively manage this uncertain market,” Armstrong said. “While we tried our best to get this just right, in this case it is now clear to me that we over-hired.”
Coinbase joins dozens of other tech and crypto companies slamming the brakes on hiring. Crypto lender BlockFi said Monday it was cutting 20 percent of its employees.