Coinbase Slashes Workforce 20% Amid Broader Crypto Downturn

Coinbase Global (Nasdaq: COIN) is preparing to lay off even more employees, in an effort to save cash amid a broader crypto downturn.

In a blog post published Tuesday, CEO Brian Armstrong announced Coinbase is letting go another 950 employees, amounting to about 20% of the company’s workforce. He said the move was necessary in order to preserve the crypto exchange’s financial wellbeing after expanding too quickly during the bull market. “This is the first time we’ve seen a crypto cycle coincide with a broader economic downturn,” he wrote in a blogpost. The latest cutback comes on top of an earlier 18% reduction in the company’s headcount back in June, followed by the elimination of another 60 jobs in November.

“With perfect hindsight, looking back, we should have done more,” Armstrong said in a followup phone interview with CNBC. “The best you can do is react quickly once information becomes available, and that’s what we’re doing in this case.” As a result of the layoffs, Coinbase is expecting to incur between $149 million and $163 million in new expenses in the first quarter ending in March, while its operating expenses are slated to drop 25%, as per a newly-released regulatory filing. Earlier, Coinbase said its revenue will be cut in half in 2022, with expectations of lower trading volume going forward.

Coinbase hasn’t been faring too well in the crypto space as of late. Not only are the company’s shares down over 85% over the past 12 months, but Coinbase has to pay $50 million to settle anti-money-laundering violations with the New York State Department of Financial Services, and another $50 million to bolster its internal “know-your-customer” controls after regulators discovered the crypto exchange repeatedly failed to conduct adequate background checks on its users.

Coinbase Global last traded at $43.23 on the Nasdaq.

Information for this briefing was found via Coinbase and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Coinbase Receives Nasdaq Reference Price of $250 Per Share Ahead of Public Debut

Ahead of the highly-anticipated direct listing of Coinbase, Nasdaq gave the major cryptocurrency exchange a...

Wednesday, April 14, 2021, 09:15:00 AM

SBF, Prosecutors Allegedly Discussing Bail Deal Upon US Extradition

Sam Bankman-Fried, the disgraced FTX founder accused of orchestrating one of the biggest ponzi schemes...

Wednesday, December 21, 2022, 11:13:48 AM

Crypto Money Laundering Soared 30% in 2021

Money laundering involving cryptocurrencies soared by 30% last year, as cyber criminals increasingly turn to...

Saturday, January 29, 2022, 03:31:00 PM

OPNX Exchange Offering Tokenized Debt Trading Flops on First Day

A newly-created crypto exchange is tokenizing the debt of bankrupt crypto companies and allowing users...

Friday, April 7, 2023, 01:10:00 PM

Coinbase: Trading Volume Estimates Point To Weak Q2 Earnings

Last week, analysts at Mizuho estimated that the trading volume on Coinbase Global, Inc.’s (NASDAQ:...

Tuesday, July 19, 2022, 03:01:00 PM