Major cryptocurrency exchange Coinbase is starting 2023 with more layoffs, letting go of another 20% of its employees in a second big wave of layoffs.

Coinbase CEO Brian Armstrong officially announced on Jan. 10 that Coinbase will cut 950 jobs as part of the company’s moves to reduce the company’s operating costs by around 25% amid the ongoing crypto winter.

Armstrong stressed that Coinbase is “well capitalized” and crypto is “not going anywhere,” but the company has to proceed with layoffs to maintain “proper operational efficiency.” As part of a staff reduction, Coinbase will shut down several projects with a “lower probability of success,” the CEO noted, without specifying which projects exactly will be terminated.

“In fact, I think that recent events will ultimately end up benefiting Coinbase greatly,” Armstrong stated, referring to increasing regulatory clarity and opportunities for Coinbase due to the FTX failure. He added:

“But it will take time for these changes to materialize, and we need to ensure we have the right operational efficiencies to weather downturns in the cryptocurrency market and take advantage of opportunities that may arise.”

Coinbase’s blog announcement is accompanied by the company’s Form 8k filing with the United States Securities and Exchange Commission, which states that Coinbase’s audited financial statements for 2022 are not yet available.

As part of the restructuring plan to reduce its operating costs, Coinbase expects to spend between $149 million and $163 million, including $58 million to $68 million in cash charges related to employee severance pay and other termination benefits. The Company expects the execution of the plan to be substantially complete by the second quarter of 2023, the document states.

The latest layoffs come months after Coinbase initially reduced its workforce by 18% in June 2022, with Armstrong citing an early economic downturn.

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