Coinbase to lay off 950 employees as crypto contagion deepens
Business
Company expecting to spend between $149 million and $163 million on restructuring costs
(Reuters) - As part of a restructuring strategy, Coinbase Global Inc said on Tuesday that it will lay off around 950 employees or 20 percent of its staff in its third wave of layoffs since last year.
The company has said that it has been expecting to spend between $149 million and $163 million on restructuring costs.
"The sector as a whole is experiencing a confidence crisis and trade volume is still quite low. The difficult climate that now exists is reflected in this employment reduction "Owen Lau, an analyst at Oppenheimer, said.
More than a trillion dollars were lost from the cryptocurrency industry last year as a result of increasing interest rates and concerns about an impending recession.
The biggest hit was when the cryptocurrency exchange FTX sought bankruptcy protection in November.
After laying off 1,100 employees or 18 percent of its staff in June Coinbase reduced the size of its recruiting and institutional onboarding teams by more than 60 in November.
