Coinbase has announced another round of layoffs, which will affect 950 employees and reduce its operating expenses by 25%.
The company CEO Brian Armstrong said that, while the decision was difficult, it was necessary in order to reduce expenses and increase the chances of doing well in every scenario.
This is the latest round of layoffs, after the company cut 1,100 jobs, or 18% of its workforce, in June 2022 and 60 employees in November 2022.
Coinbase estimates that its plan will cost between $149 million and $163 million in restructuring expenses, with around $58 to $68 million of this in cash charges related to employee severance and other termination benefits, and stock-based compensation expenses of $91 million to $95 million.
These expenses will be recognized in the first quarter of 2023. The crypto industry has seen a downturn and a turbulent macroeconomic backdrop which impacted the company, along with a fallout from some actors in the crypto industry.
Genesis Trading, a crypto trading firm also announced layoffs last week by reducing its workforce by 30%.