Breaking: Coinbase plans to cut off another 20% of its workforce as part of its restructuring plan, according to an SEC filing.
Major cryptocurrency exchange Coinbase is starting 2023 with more layoffs, letting go of another 20% of its employees in a second major wave of layoffs.on Jan. 10 that Coinbase will cut 950 jobs as part of the company’s measures to reduce the firm’s operating costs by around 25% amid the ongoing crypto winter.
Armstrong emphasized that Coinbase is “well capitalized,” and crypto “isn't going anywhere,” but the firm has to proceed with layoffs in order to keep the “appropriate operational efficiency.” As part of a headcount reduction, Coinbase will be shutting down several projects with a “lower probability of success,” the CEO noted, without specifying what projects will be terminated exactly.
“In fact, I believe recent events will ultimately end up benefiting Coinbase greatly,” Armstrong stated, referring to the growing regulatory clarity and Coinbase’s opportunities due to the failure of FTX. He added: “But it will take time for these changes to come to fruition, and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge.”
Coinbase’s blog announcement is accompanied by the firm’s 8k form filing with the United States Securities and Exchange Commission, whichAs part of the restructuring plan to reduce its operating costs, Coinbase expects to spend about 149 million to $163 million, including $58 million to $68 million in cash charges related to employee severance and other termination benefits. The Company expects execution of the plan to be substantially complete by the second quarter of 2023, the filing notes.
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