This is the second round after the first saw 18% (or nearly 1,100) of the workforce go.
Coinbase will reduce 950 jobs (or 20 percent) and close certain projects as part of its efforts to lower costs.
These two actions will decrease the company’s cost by 25% in the next three month, he stated. The company projects that the post-restructuring expense will fall by $149 to $163 million.
After the first round, 18% of the workforce was laid off, or close to 1,100 jobs. This second round is the result of another round. Coinbase CEO Brian Armstrong, co-founder of the company, stated that there was no other way to cut costs or expenses.
The company reported a loss in excess of 500 million dollars over the past year, according to its latest financial reports. Coinbase and other companies are taking aggressive steps to cut costs while others in the same industry are doing the same.
Armstrong claimed that the crypto market is suffering due to some unscrupulous players. This most likely refers to Sam Bankman Fried and Three Arrows Capital founders Kyle Davies & Su Zhu.
Kraken had stated it would lay off 1,100 workers, or 30%, of its workforce.
The value of Coinbase shares fell 83% over the past year. Armstrong didn’t specify which projects she intended to close. / CIO Albanian