Coinbase to Let Go Another 20% of Staff by Q2

Coinbase (COIN) has announced plans to lay off approximately 950 employees as part of a restructuring that will be completed by the end of the second quarter. That number equates to around 20% of Coinbase’s total workforce, which the company’s website estimates to be more than 4,700 employees.

In a statement to the SEC on Tuesday, Coinbase said it was responding to continuing market conditions that are affecting the crypto industry. The restructuring is expected to cost $149 million to $163 million, including $58 million to $68 million in employee severance cash payments.

When the bitcoin bear market hit last June, Coinbase began laying off staff. CEO Brian Armstrong explained at the time that the company had experienced growth too quickly during the cryptocurrency bull market, from 1,250 employees in early 2021 to more than 5,000 employees now.

The company began laying off 1,100 employees, 18 percent of its workforce, followed by another 60 layoffs in November as the crypto winter deepened with the collapse of rival exchange FTX.

Following the announcement, COIN shares moved up 12%, indicating that investors welcome the move to tighten the belts at the exchange.