NEW YORK (AP) — Cryptocurrency trading platform Coinbase is cutting approximately 20% of its workforce, or about 950 jobs, in a second round of layoffs in less than a year.
The company cited adverse economic conditions and disruptions within cryptocurrency markets.
Bitcoin has plunged almost 60% over the past year and a volatile year got worse in late 2022 with the collapse of cryptocurrency exchange FTX which filed for bankruptcy protection in November after experiencing the equivalent of a bank run. Customers tried to withdraw billions of dollars from the exchange after its financial stability came into question.
Last week FTX founder Sam Bankman-Fried pleaded not guilty in Manhattan federal court to charges that he cheated investors and looted customer deposits on his cryptocurrency trading platform.
Shares slid 3% slightly before the opening bell Tuesday.
Coinbase Global Inc. said in a regulatory filing that layoffs are part of its restructuring plan, which it expects to complete by the second quarter.
The company anticipates about $149 million to $163 million in total restructuring costs, including approximately $58 million to $68 million in charges related to employee severance and other termination benefits.
Coinbase is a remote-first company that was founded in 2012 and has no headquarters. It went public in April 2021 by listing its stock directly and skipping the traditional process of hiring underwriters.