Coinbase Makes New Job Cuts as Crypto Slumps Continue (NASDAQ:COIN)

Since the cryptocurrency market remains volatile, Coinbase (Nasdaq: Coin) will cut staff again, laying off about 950 people, or 25% of its workforce, the company said Tuesday.

With the cryptocurrency market downturn, it started over A year ago, the virtual currency exchanges FTX and Coinbase (coin) result was dented.coinbase inventory 1.5% drop in premarket trading.

The company expects 2022 adjusted EBITDA to be within the -$500 million range provided on November 3. -2022 outlook.

Ultimately, CEO Brian Armstrong hopes Coinbase (COIN) will emerge from the crypto turmoil as major competitor FTX collapses and regulations become clearer.

“However, these changes will take time to bear fruit, and we need to ensure adequate operational efficiencies to weather the crypto market downturn and capture opportunities that may emerge,” he said in a blog post. said in

As part of the job cuts, Coinbase (COIN) will close several projects with a “low chance of success,” he said.

In connection with this action, the company will incur restructuring costs of approximately $149 million to $163 million, including approximately $58 million to $68 million in cash costs related to employee severance and termination benefits. is expected to occur. Approximately $91 million to $95 million of total costs will be in stock-based compensation expenditure for early vesting of outstanding stock awards. Substantially all claims are expected to be recognized in the first quarter of 2023.

The restructuring plan will reduce operating expenses by approximately 25% in the first quarter, including sales and marketing, technology and development, and general and administrative expenses.

Coinbase (COIN) shares surged on Monday as Jefferies began covering the cryptocurrency market with a hold rating based on hopes the exchange would weather the impact of FTX.