The cryptocurrency exchange Coinbase is laying off nearly a fifth of its staff due to the collapse of its shares and falling cryptocurrency prices. 18% of almost 5,000 permanent employees are laid off, which will be about 1,100 people. Coinbase said this in a letter received by employees, writes CNBC.

CEO Brian Armstrong pointed to a possible recession and the need to increase the effectiveness of Coinbase. He also noted that the company has grown too fast during the high popularity of cryptocurrencies.

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment,” says Armstrong.

First, Coinbase stopped recruiting. Two weeks later, the company said it would continue the freeze for the foreseeable future. According to the CEO, staff costs have become too high.

The news of the downsizing came amid falling Coinbase shares. This year, they fell by 79% and 85% from a record high.