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Cryptocurrency exchange Coinbase Global Inc said on Tuesday it will cut its workforce by about 20 percent, or 950 employees, the third round of major layoffs at the company in less than a year.
The company said it will incur approximately US$149 million to US$163 million in restructuring costs. The stock was down three percent in early trading on the stock market. Over the past year, the company’s stock has lost about 90 percent of its value amid the broader cryptocurrency slump.
“The entire industry is experiencing a crisis of confidence and trading volumes remain very low. This job cut is a reflection of the current challenging environment,” said Owen Lau, an analyst at Oppenheimer.
Last year, rising interest rates and worries about an economic downturn wiped more than a trillion dollars out of the crypto sector. The slump also forced major industry players such as Three Arrows Capital and Celsius Network to close shop.
However, a bigger blow came after the largest crypto exchange FTX filed for bankruptcy protection in November. The rapid fallout has led to tough regulatory scrutiny of how major exchanges hold user funds.
“We’ve also seen the fallout from unscrupulous actors in the industry, and there’s still further contagion,” Coinbase CEO Brian Armstrong said in a blog post.
“We will kill some projects that have a lower probability of success.”
Coinbase said it had no additional comment on the plan.
The crash in the crypto world continued this year, marked by deposits, layoffs and numerous legal hurdles.
Coinbase in November cut more than 60 jobs in its recruiting and institutional onboarding team, after cutting 1,100 jobs, or 18 percent of its workforce, in June.
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