Coinbase Slashes 20% of Staff in the Third Round of Layoff

• In its third round of layoff, Coinbase slashes 950 employees.
• This is to tackle economic conditions that affected the industry in the bear market.
• Coinbase will close projects that have a lower probability of success.

The largest US crypto exchange, Coinbase announced its third round of layoff as it slashes 20% of its workforce this time. In his latest blog, Coinbase CEO Brian Armstrong announced that the firm is letting go of around 950 employees.

As per the announcement, the layoff is an action to tackle economic conditions that have affected crypto firms in a more than year-long industry bear market.

The blog explains:

As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario.

With the layoff, Coinbase will close projects that have a lower probability of success. The official statement also reveals that Coinbase might incur nearly $149 million to $163 million in restructuring expenses, which is expected to be completed by the end of Q2.

Armstrong also maintained that those affected by this call will receive a comprehensive package that includes a minimum of 14 weeks of base pay health insurance, and other benefits for US employees.

In November 2022, Coinbase had slashed more than 60 jobs in its recruiting and institutional onboarding teams, after its first round of layoff in June 2022 which let go 18% of its staff. The firm will share more details publicly on its expense outlook in a public 8-K filing and on its Q4 earnings call in February.  A December report, on the other hand, revealed that the crypto industry witnessed a rise in the number of employment opportunities in spite of the persisting bear market in 2022.