This is the second round in a series of layoffs that follows the first, which saw 18% of employees, or almost 1,100 jobs, be eliminated.
Coinbase will reduce 950 jobs (or 20 percent) and close certain projects in its bid to lower costs.
These two actions will decrease the company’s cost by 25% in the next three month, he stated. According to the company, post-restructuring costs will drop by $149 million to $163 millions.
This is the second round in a series of layoffs that follows the first, which saw 18% of employees, or almost 1,100 jobs, be eliminated. Coinbase CEO Brian Armstrong and co-founder said that there was no alternative to reducing costs and expenses.
The company reported a loss in excess of 500 million dollars over the last year, according to its latest financial reports. Coinbase is one of many exchanges that have taken similar steps to reduce costs as companies in other industries.
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.
Coinbase shares have fallen 83% in value over the last year. Armstrong didn’t say which projects he planned to close. / CIO Albanian