Coinbase is closing down a majority of its operations in Japan and laying off staff located there, according to Bloomberg News.
On Jan. 11, Coinbase’s Vice President for Business Development, Nana Murugesan, announced the news by stating:
“We’ve decided to wind down the majority of our operations in Japan, which led to eliminating most of the roles in our Japan entity.”
Murugesan added that Coinbase is not interested in mergers and acquisitions and will not consider selling the Japanese unit. He said the company is currently going through a transition period, and the shutdown will take place after Coinbase finalizes its discussions with the Japanese Financial Services Agency.
The exact number of employees to be affected by this decision is yet to be determined. However, Murugesan said a small number of employees would remain in their positions so that Coinbase can ensure the safety of customers’ assets.
The news came one day after the exchange announced laying off 950 employees on a global scale on Jan. 10, 2023. The number equated to roughly 20% of Coinbase’s global workforce.
The exchange’s CEO Brian Armstrong stated that after reviewing possible 2023 scenarios, the company decided to reduce expenses to increase its chances of success. He added that several projects with a low probability of success would be shut down.
Shutting down business in Japan marks Coinbase’s third downsize decision. As soon as the bear market started after the Tera-Luna collapse, on June 4, 2022, the exchange decided to un-hire new recruits and laid off 18% of its workforce, which equated to 1,100 employees at the time.
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