Coinbase Slashes Another 950 Jobs

Coinbase Global Inc said on Tuesday it will reduce its workforce by about 950 employees as part of a restructuring plan, in a third round of layoffs for the cryptocurrency exchange since last year.

The company's shares rose 3.3 percent on the to US$39.53 in premarket trading.

Coinbase said it expects to incur a total of about US$149 million to US$163 million in restructuring expenses.

More than a trillion dollars was wiped out from the crypto sector last year on rising interest rates and worries of an economic downturn. The slump also forced key industry players such as Three Arrows Capital and Celsius Network to shut shop.

However, the bigger blow came after larger crypto exchange FTX filed for bankruptcy protection in November. Its swift fall has sparked tough regulatory scrutiny of how major exchanges hold user funds.

The crypto world's woes have continued this year, marked by plunging deposits, layoffs and multiple legal hurdles.

Coinbase in November cut more than 60 jobs in its recruiting and institutional onboarding teams, after slashing 1,100 jobs, or 18 percent of its workforce, in June. (Reuters)