Coinbase’s CEO, Brian Armstrong, has declared that the recent layoffs of 950 employees were a difficult but necessary decision for the company in order to reduce expenditures and improve their chances of success in any circumstances.
This is the third round of job cuts from Coinbase, who laid off 1,100 employees in June 2022 and 60 employees in November 2022.
The restructuring plan is expected to cost between $149 million and $163 million, of which $58 to $68 million is cash charges for severance and other termination benefits, and stock-based compensation expenses of $91 million to $95 million.
These expenses will be accounted for in the first quarter of 2023. The crypto market has experienced a downturn and an unsteady macroeconomic environment which has had a negative impact on Coinbase, in addition to certain crypto-related actors.
Last week, crypto trading firm Genesis Trading reduced its workforce by 30%.
