Brutal layoffs at Coinbase. Again 😳; Amazon is now in the payments business too. And it could be huge 🤯; InsurTech is going to boom in 2023 🚀

FinTech is Eating the World, 11 January

Hey Everyone,

Happy Thursday! Due to technical problems, yesterday’s issue is coming out today. But it’s definitely worth the wait as it’s the best one yet!🔥 We’re going to look at more brutal layoffs at Coinbase (& what this means for the industry + why you might still want to be bullish), Amazon that is now in the payments business too (& their payment strategy + why it could be huge), and InsurTech, which is going to boom in 2023 (you have to keep a close eye on this!). Let’s jump straight into the fascinating stuff.

Brutal layoffs at Coinbase. Again 😳

The (sad) news 🗞 Crypto exchange pioneer Coinbase COIN 0.00%↑ plans to cut 950 jobs or about 20% of its workforce and shut down “several” projects as it looks to weather the severe crypto winter.

This is the second round of major layoffs at the crypto exchange, which eliminated 18% of its workforce, or nearly 1,100 jobs last June. Another 60 employees were let go in November 2022. Coinbase has now removed over 2,000 jobs since June. That’s brutal!

More on this 👉 The company, which has suffered sustained losses and customer outflows in recent quarters, says it expects its full-year figures to be "within the negative $500 million loss guardrail" previously stated in a shareholder letter.

The restructuring is hence billed as a response to ongoing market conditions impacting the cryptoeconomy. But layoffs won’t be cheap - it will cost up to $163 million, including as much as $68 million in cash charges related to employee severance. That’s a lot of money!

Why this matters? 🤔 Coinbase is just the publicly listed tip of the iceberg. The problem is much deeper and stems way beyond them.

Here’s more on this + why you might want to still be bullish on Coinbase: