Coinbase Global Inc (NASDAQ: COIN) has announced it will cut jobs again as it bids to minimise costs after a brutal crypto winter.
Brian Armstrong, the co-founder and CEO of Coinbase, said in a blog announcement on 10 January that the layoffs are part of the company’s plans to cut operating costs in 2023.
Coinbase cuts workforce by 20%
The cryptocurrency industry has seen multiple crypto-related companies and projects choose to cut employee numbers amid a tough crypto winter.
On Tuesday, Coinbase revealed it would be letting go of 950 people, accounting for a 20% layoff that’s yet another major move by the US-based firm. According to Armstrong, the measure will help the crypto exchange cut costs by about 25%.
Armstrong explained the decision to reduce the company’s headcount:
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.”
Coinbase is also set to shut down several projects deemed to offer “a lower probability of success.” However, the rest of the firm’s operations will continue – although with a reduced workforce.
As Invezz highlighted in June, shares of Coinbase fell as the company announced it would be cutting its employee numbers by about 18%. The reduction was to impact 1,100 people, with the layoffs also pegged on plans to minimise costs.
Shares of Coinbase were up 1% on Tuesday morning, trading at $39.62 at 10:00 am ET. The COIN stock is up more than 11% in the past five days, having soared following the company’s $100 million settlement with New York Department of Financial Services (NYDFS).
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