Coinbase Global Inc. is laying off about 950 workers, about 20% of its workforce, as a worsening cryptocurrency market downturn spurs fresh layoffs at the largest U.S. digital asset exchange.
Co-founder and Chief Executive Brian Armstrong announced the layoffs in a blog post on Tuesday, saying the steps were needed in response to the industry downturn.
In June, Coinbase announced it would lay off 18 percent of its workforce, equivalent to about 1,200 employees. It eliminated another 60 jobs in November. It will now close several items.
Coinbase expects to take a restructuring charge of $149 million to $163 million, according to a statement Tuesday. It said the overhaul would be "substantially complete" by the end of the second quarter. As a result, adjusted EBITDA for the full year ended December 31 is expected to be approximately negative $500 million.
The bear market for cryptocurrencies is now in its second year, with the industry experiencing a series of collapses that have hurt its prospects, most recently the bankruptcy of rival exchange FTX. Companies across the industry have resorted to aggressive cost-cutting measures over the past few months as revenues have fallen and profits have evaporated. Coinbase’s stock plunged 86% last year, outpacing market leader bitcoin, which tumbled 64%. The stock fell about 2.3% on Tuesday before regular trading in the U.S. began.
