Despite fears of a recession and crypto values plunging, cryptocurrency exchange Coinbase announced

it would lay off 18 percent of its workforce Tuesday. Approximately 1,100 workers will be affected by

The cuts, leaving the firm with approximately 5,000 employees. Crypto shares continued to see volatility

in morning trading, with Bitcoin losing 4.9 percent to trade near $22,000. More than two-thirds of the value of 

The leading cryptocurrency has been lost over the last seven months. In a memo to employees announcing the layoffs

Coinbase's chief executive and cofounder Brian Armstrong predicted that there would be a recession in the coming months 

And a corresponding "crypto winter." With a goal of suppressing price inflation, the Federal Reserve is raising interest rates rapidly,

But higher rates typically make investors more averse to riskier investments such as crypto and tech stocks.

"We need to ensure that we are capable of coping with a prolonged downturn," wrote Armstrong.

Our company has grown quickly and we have too many employees to manage this uncertain market effectively.

We will be able to handle this period more confidently even if it is prolonged severely because of the actions we are taking today," he said.

The layoffs at Coinbase took effect immediately. Armstrong sent the message to all employees

And those affected received it on their personal email addresses rather than their work accounts.

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