As part of its restructuring plan to cut operational costs amid the bear market, Coinbase crypto exchange is set to carry out a second phase of layoffs which will target about 20% of its entire workforce.
On January 10, Coinbase CEO Brian Armstrong formally stated that the business will eliminate 950 positions as part of efforts to slash operational expenses by around 25% in the midst of the prolonged crypto winter.
Coinbase is “fully financed,” according to Armstrong, and cryptocurrency “isn’t going away,” but the company must continue with layoffs in order to maintain “proper operating efficiency.” The CEO of Coinbase said that as part of a workforce reduction, certain initiatives would be canceled at the company that has a “reduced likelihood of success.”
Regarding the opportunity presented by the loss of FTX and the rising regulatory clarity, Armstrong said, “In reality, I think recent events will eventually wind up helping Coinbase significantly. Added him:
“But it will take time for these changes to come to fruition, and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge.”
The company’s 8k form filing with the United Indicates Securities and Exchange Commission, which is attached to Coinbase’s blog release, states that Coinbase’s audited financial statements for 2022 are not yet available.
Coinbase anticipates spending between $149 million and $163 million as part of its restructuring strategy to lower operational expenses, including between $58 million and $68 million in cash expenditures for employee severance and other termination payments. According to the filing, the Company anticipates that plan implementation will be mostly finished by the second quarter of 2023.
The most recent layoffs occur after Coinbase originally decreased its employment by 18% in June 2022, blaming the beginning of an economic slump, according to Armstrong.
