As part of a restructuring plan, cryptocurrency trading platform Coinbase Global has announced nearly 1,000 job cuts in another round of layoffs, which is about 20% of the company’s global team strength.
Coinbase has cited economic conditions that have adversely impacted crypto companies in a more than year-long industry slump.
The company’s shares rose 3.3% to $39.53 in premarket trading.
The largest US crypto exchange said it expects to incur a total of about $149 million to $163 million in restructuring expenses, which it expects to complete by the end of second quarter, according to a statement on Tuesday.
Coinbase embarked on the cuts “in response to the ongoing market conditions impacting the crypto economy, as well as ongoing business prioritization efforts,” as per the statement.
Last year in November, Coinbase cut more than 60 jobs in its recruiting and institutional onboarding teams, after slashing 1,100 jobs, or 18% of its workforce, in June.
Coinbase is a remote-first company that was founded in 2012 and has no headquarters. It went public in April 2021 by listing its stock directly and skipping the traditional process of hiring underwriters.
Over a trillion dollars was wiped out from the crypto sector in 2022 on rising interest rates and worries of an economic downturn. The slump also forced key industry players such as Three Arrows Capital and Celsius Network to shut shop.
Crypto’s bear market is entering its second year, and the industry has suffered a series of meltdowns that hurt its outlook, most lately the bankruptcy of rival exchange FTX in November. Its swift fall has sparked tough regulatory scrutiny of how major exchanges hold user funds.
With revenues falling and profits evaporating, companies across the sector have resorted to steep cost cuts in past months.
The crypto world’s woes have continued this year, marked by plunging deposits, layoffs and multiple legal hurdles.
(With agency inputs)