David Solomon, chief executive officer of Goldman Sachs, speaks during the Milken Institute Global Conference in Beverly Hills, April 29, 2019
Coinbase recently unveiled a business overhaul and laid off 18 percent of its workforce. The exchange also rescinded existing job offers to would-be new starters. First-quarter earnings revealed $430mn in net losses. Goldman Sachs: “Coinbase will need to make substantial reductions”.
Goldman Sachs has hinted that Coinbase may face additional layoffs as a result of the crypto market fall, which has halted retail investment in the industry.
In a note released on Monday, Goldman Sachs analysts stated, “We feel additional reductions are necessary, given the current cost-cutting initiative just returns headcount to first-quarter level
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Coinbase recently launched a company reorganization and fired off 18% of its workforce, or more than 1,000 individuals. After first-quarter earnings revealed $430 million in net losses, the exchange also revoked job offers to prospective new hires.
Goldman Sachs stated, “Coinbase will need to make major cuts to its cost base in order to stop the consequent cash burn when retail trading activity dries up.”
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Faryar Shirzad, chief policy officer at Coinbase, responded last month, “Never say never,” when asked if the exchange could guarantee there will be no more price reductions.
Shirzad stated at the time, “The only promise we can make is to operate the company responsibly and for the long haul.” If additional action is necessary, we will take it.
He noted at the FT’s “The Next Web” conference on June 17 that the exchange does not anticipate any additional reductions.