Cryptocurrency exchange Coinbase Global Inc has announced a further cut of more than 60 jobs.

The job cuts of its institutional recruiting and onboarding teams came at a time when the cryptocurrency market has fallen silent due to the dramatic financial crisis of cryptocurrency exchange FTX that involved more than one party.

Additionally, this is the second round of job cuts at Coinbase this year, coming about a week after “crypto market headwinds” contributed to the US-based crypto exchange’s $544.6 million net loss. US for the three months ending September 30. Compared to last year, the company had made a profit of $406.1 million.

According to a Coinbase spokesperson, the company believes the job cuts will help smooth operation as efficiently as possible.

Coinbase eliminated a total of 1,100 jobs or 18% of its workforce in June. The move came about a week after the company announced an extension of the hiring freeze and the rescission of accepted offers.

Previously, CEO Brian Armstrong had said that Coinbase had “overhired” and had to purge its workforce accordingly.

The crypto industry has suffered this year due to higher interest rates and concerns about an economic downturn. Major crypto firms like Voyager Digital, Three Arrows Capital, and Celsius Network have already collapsed and are facing bankruptcy.

The crypto exchange appears to be struggling in this year’s bear market. Its quarterly revenue is down 28% and trading volumes are down 27% during the third quarter of 2022. While the company’s shares are also down nearly 80% this year and 27.4% this month alone.

Another major company involved in the web3 space has cut a large number of jobs. Facebook parent company Meta Platforms Inc has confirmed cutting 11,000 jobs or 13% of its global workforce as it looks to focus on its core business areas.

Its metaverse engagements have been wildly successful since the company began investing in the space. As reported by block chain.News, Meta’s metaverse division posted a $3.7 billion loss in the third quarter (Q3) of this year, a figure that has further highlighted the company’s capital fragility.

The loss of the metaverse on record and the fallout bordering on staff layoffs could cause a significant slowdown among Web2 companies looking to venture into the metaverse.

The reason is very simple and is bound to hinge on the fact that if Meta Platforms could take a loss with its massive capitalization, then the discovery of the company is more or less a gamble to be expected.

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