Second Round of Layoffs at Coinbase Will Result in Another 20% Reduction in Staff

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Last Updated on January 10, 2023 by Bitfinsider

A second significant round of layoffs will begin in 2023, with leading cryptocurrency exchange Coinbase letting go of another 20% of its workforce.

On January 10, Coinbase CEO Brian Armstrong formally announced that the business would eliminate 950 positions as part of efforts to slash operating expenses by about 25% in the midst of the prolonged crypto winter.

Coinbase is “well capitalized,” according to Armstrong, and cryptocurrency “isn’t going anywhere,” but the company must continue with layoffs in order to maintain “appropriate operational efficiency.” The CEO of Coinbase said that as part of a workforce reduction, certain initiatives will be cancelled at the company that have a “lower probability of success.”

Regarding the opportunity presented by the loss of FTX and the rising regulatory clarity, Armstrong said: “In fact, I believe recent events will ultimately end up benefiting Coinbase greatly.” He further 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.”

The company’s 8k form filing with the US Securities and Exchange Commission, which is attached to Coinbase’s blog announcement, indicates that the company’s audited financial results for 2022 are not yet available.

Coinbase anticipates spending between $149 million and $163 million as part of its restructuring plan to lower operating costs, including between $58 million and $68 million in cash charges for employee severance and other termination payments. According to the filing, the Company anticipates that plan implementation will be mostly finished by the second quarter of 2023.

The most recent layoffs occur after Coinbase initially decreased its employment by 18% in June 2022, blaming the beginning of an economic slump.

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