The ongoing market conditions impacting the crypto industry have forced online crypto trying platform Coinbase to restructure.
This restructuring will see the company downsize its workforce, having announced plans to cut around 950 jobs.
This is coming after a similar round of job cuts it made last year, in which the crypto market was faced with a massive bloodbath.
In addition to the job cuts, the company will also discontinue several projects with a low probability of success.
The company’s CEO Brian Armstrong wrote in a memo, “ While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.
“The FTX collapse and the resulting contagion had created a black eye for the industry, there is likely more to drop. We may not have seen the last of it, there will be increased scrutiny on various companies in the space to make sure that they are following the rule. Long term that’s a good thing, but short term, there’s still a lot of market fear”.
Coinbase also disclosed that the cost of its restructuring processes will cost between $149 million and $163 million, including cash charges of $58 million to $68 million related to employee severance
Investors King understands that coinbase began laying off part of its workforce in June last year. It laid off 18 percent of its workforce which is roughly 1,200 employees.
In another round of layoff, it eliminated 60 positions in November 2022, as the months-long slump in cryptocurrency deepened.
The current downturn in the crypto market has continued to put pressure on coinbase which went public in 2021 and expanded rapidly during the pandemic.
Meanwhile, Coinbase isn’t the only company that has laid off part of its workforce. Several tech companies like Meta, Amazon, Salesforce, etc have all announced layoffs as they are faced with higher interest rates, inflation, and several other macroeconomic factors that have slowed the economy.