- Coinbase has announced the closure of its Chicago Office
- They are also pulling back efforts on their matching machine
- The Chicago Office had been opened in 2018 with plans of hiring over 100 engineers
Coinbase has recently taken a number of steps towards expansion such as adding new tokens to their roster and unveiling their crypto debit card for users. At the same time, it seems certain aspects of their business operations are going to be downsized.
This comes following a report from April 23, 2019, that states that Coinbase has shut down its Chicago office and has also scaled back on the development of its matching machine.
Interestingly enough, the Chicago office had been opened less than a year ago and had plans of hiring over 100 people, most of whom will be working as engineers. Now it seems that the company will be restructuring its operations even as the bear market continues.
The company said:
“We have made the difficult decision to consolidate the matching engine efforts and thus wind down the matching engine team in Chicago. We will look to relocate a small number of Chicago-based matching engine employees to San Francisco.”
According to the report, a spokesperson for Coinbase stated that the closure of the office was not a sign of troubling times but rather a minor setback and that the hiring of new employees was taking place in other offices. It was also noted that the company is no longer focused on high-frequency trading and instead, will be giving attention to their new products.
The question on everyone’s mind is what will happen to the staff? It has been estimated that 30 engineers have been laid off in the process of shutting down of the Chicago office and while some of the engineers are being moved to other places, there is speculation of more layoffs coming at some point in the future. Some employees will also reportedly be working remotely for Coinbase.
The now-defunct Chicago office had been led by Paul Bauerschmidt and Derek Groothius who have both left Coinbase all together.
It is interesting to note that high-frequency trading is no longer a priority at Coinbase considering how much effort has been put into the matching machine as of last year. It could represent the current state of the industry in which high-frequency trading simply is no longer the norm and that as the industry matures, more products will take center stage.
It will be interesting to see just how much Coinbase and the crypto industry at large changes over the next few months with regards to trading and also to new products.