Coinbase, a cryptocurrency exchange, has become the latest tech business to announce widespread layoffs. CEO Brain Armstrong announced the layoffs in an email to workers on Tuesday as the business tries to “weather downturns in the crypto market” by reducing its workforce by 950 people. In addition to posting the email on the Coinbase blog, the business also included the news in an 8-K filing.

“The FTX meltdown and its ripple effects have given the industry a bad eye.”

Armstrong stated in his message, “While it is always hard to part ways with our fellow colleagues, there was no way to cut our expenditures considerably enough, without contemplating adjustments to personnel.” Workers in the United States may expect to get 14 weeks of salary, plus two more weeks for every year they are employed. Those who are affected will get an email today.

Armstrong told CNBC, “The FTX collapse and the accompanying contagion has created a black eye for the sector.” He also implied that more trouble was on the way. It’s possible this isn’t over; organisations operating in this sector may expect further examination to ensure they’re in compliance with the law. Over the course of several years, that will be beneficial. However, market anxiety persists in the near term.

The decline in the cryptocurrency market has coincided with layoffs at Coinbase. CNBC reports that the value of Bitcoin has dropped dramatically over the previous several months, falling by around 58% in that time. Since its initial public offering in April 2021, Coinbase’s stock price has moved roughly in the same manner. After reaching a peak of over $340 in2021, the stock has since dropped to its current price of about $40.