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Jan 10 (Reuters) – Coinbase Global Inc (COIN.O) said on Tuesday it will cut about 950 jobs as part of a restructuring plan.
The company’s shares rose 3.3% to $39.53 in pre-market trading.
Coinbase said it expects to incur total restructuring costs of about $149 million to $163 million.
Over $1 trillion was wiped out of the crypto sector last year due to rising interest rates and recession fears. The recession also forced major industry players such as Three Arrows Capital and Celsius Network to close.
But it took a bigger hit after major crypto exchange FTX filed for bankruptcy protection in November. Its rapid decline has brought heavy regulatory scrutiny to how major exchanges hold their users’ funds.
The crypto world’s woes continue this year, marked by plummeting deposits, layoffs, and multiple legal hurdles.
After cutting 1,100 people, or 18% of its workforce, in June, Coinbase cut more than 60 people in its recruiting and institutional onboarding teams in November.
Reported by Manya Saini, Bengaluru. Edited by Saumyadeb Chakrabarty and Shounak Dasgupta
Our standards: Thomson Reuters Trust Principles.
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