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20% Of The Workforce Is Fired In Another Round Of Coinbase Job Cuts

By 01/10/2023 4:58 PMNo CommentsBy YidInfo Staff

Coinbase, a cryptocurrency trading platform, is eliminating 950 employees, or nearly 20% of its workforce, in the second round of layoffs in less than a year.

The business highlighted unfavorable economic conditions and market disruptions for cryptocurrencies.

The price of bitcoin has dropped by about 60% over the previous year, and in late 2022, the collapse of the cryptocurrency exchange FTX, which had filed for bankruptcy protection in November after suffering the equivalent of a bank run, made an already turbulent year much more unstable.

Customers made billion-dollar withdrawal attempts after the exchange’s financial soundness was questioned.

Sam Bankman-Fried, the creator of FTX, pleaded not guilty last Thursday in Manhattan to charges of defrauding investors and stealing client money on his bitcoin trading platform last Thursday.

In a first round of layoffs, Coinbase stated in June that 1,100 positions, or around 18% of its global staff, would be lost.

Shares marginally declined by 3% before Tuesday’s opening bell.

In a regulatory filing, Coinbase Global Inc. stated that layoffs are a part of its reorganization plan, which it anticipates finishing by the second quarter.

The entire cost of restructuring is expected to be between $149 million and $163 million, of which between $58 million and $68 million would be spent on employee severance and other termination benefits.

It was incorporated in 2012 as a remote-first business with no central office, Coinbase.

It went public in April 2021 without using underwriters, just placing its stock on the stock exchange.



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