The cryptocurrency exchange platform Coinbase laid off about 18% of its workforce — or about 1,100 people — on Tuesday, the company announced.

Coinbase CEO and cofounder Brian Armstrong blamed an impending recession in the U.S. and an upcoming "crypto winter" as the reasons for the company to be making these drastic cuts

A "crypto winter" is when prices "contract and remain low for an extended period," according to Forbes.

Armstrong said: "In past crypto winters, trading revenue (our largest revenue source) has declined significantly.

But he also admitted that the company has grown too quickly. Coinbase went public last year — becoming the first major cryptocurrency company to do so.

Bitcoin hit a record of more than $69,000 in November 2021. Today, it's trading around $23,000. 

Other companies in the crypto industry have announced major layoffs as well — including BlockFi and

"That was certainly a watershed moment. So, that meant that cryptos had risen a lot, and it gave them much more room to fall."