Coinbase, the most popular cryptocurrency trading platform will cut about 1,100 jobs. the company said it was shaving off 18% of its workforce as it prepares to ride out a downturn in the crypto sphere.

Cryptocurrency is in freefall with the market value of the digital assets falling below $1 trillion on Monday as investors dumped risky assets fearing sharper interest rate hikes after high US inflation data last week.

“Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn,””We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period”

“employees would receive an email informing them if they had been affected, without giving further details. Notably, the CEO is worth $2.4 billion.”

                                                                                         Brian Armstrong CEO Coinbase.

Coinbase had earlier this month said it would extend a hiring freeze and rescind a number of accepted offers to deal with the current economic conditions. The company had ramped up hiring when the crypto market scaled new highs during the pandemic, growing headcount by nearly four times in just five quarters. Bitcoin, the world’s largest cryptocurrency, tumbled as much as 14% on Monday after crypto lender Celsius Network froze withdrawals and transfers. Coinbase is not alone in downsizing as the crypto market meltdown has forced companies like BlockFi and Crypto.com to slash hundreds of jobs.

The company’s shares have already fallen roughly 80% this year and it expects to incur about $40 million to $45 million in total restructuring expenses, largely related to employee severance and other termination benefits.

Since its record high of $69,000 in November, Bitcoin has slumped nearly 70%. It is now at $20,245.