Layoffs intensify: Crypto exchange Coinbase to fire nearly 1,000 employees
In the third round of layoffs, Coinbase Global Inc is firing 950 employees as part of its restructuring plan.
With a series of layoffs, the company expects to incur about $149 million to $163 million. Its shares reverse coursed to fall 2.3% premarket after rising more than 5% on the layoffs announcement earlier, as per a report by Thomson Reuters.
The economic downturn is showing its severe effect as it wiped out more than a trillion dollars from the crypto sector, forcing industry players such as Three Arrows Capital and Celsius Network to shut shop.
While these were already major losses, the bigger blow came when crypto exchange FTX filed bankruptcy protection in November. The step intensified regulatory scrutiny of how major exchanges hold user funds.
"We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion. We will be shutting down several projects where we have a lower probability of success," Coinbase Chief Executive Brian Armstrong said in a blog post.
However, the company didn’t reveal the projects it was planning to shelve. Meanwhile, the uncertainty continues in the crypto world due to plunging deposits, layoffs, and multiple legal hurdles.
In November last year, Coinbase slashed more than 60 jobs in its recruiting and institutional onboarding teams, after firing 18% of its workforce in June.