Another round of Coinbase job cuts, 20% of workforce let go

NEW YORK (AP) — Cryptocurrency trading platform Coinbase is cutting approximately 20% of its workforce, or about 950 jobs, in a second round of layoffs in less than a year.

The company cited adverse economic conditions and disruptions within cryptocurrency markets.

Bitcoin has plunged almost 60% over the past year and a volatile year got worse in late 2022 with the collapse of cryptocurrency exchange FTX which filed for bankruptcy protection in November after experiencing the equivalent of a bank run. Customers tried to withdraw billions of dollars from the exchange after its financial stability came into question.

Last week FTX founder Sam Bankman-Fried pleaded not guilty in Manhattan federal court to charges that he cheated investors and looted customer deposits on his cryptocurrency trading platform.

Coinbase announced the elimination of 1,100 jobs in June, or approximately 18% of its global workforce, in a first round of cuts.

Shares slid 3% slightly before the opening bell Tuesday.

Coinbase Global Inc. said in a regulatory filing that layoffs are part of its restructuring plan, which it expects to complete by the second quarter.

The company anticipates about $149 million to $163 million in total restructuring costs, including approximately $58 million to $68 million in charges related to employee severance and other termination benefits.

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.