Coinbase to Lay Off More Workers in Second Round of Cuts
January 10 2023 - 7:42AM
Dow Jones News
By Will Feuer
Coinbase Global Inc. said it is laying off 950 employees to cut
costs, another round of job cuts after the cryptocurrency exchange
cut its headcount by about 18% last year
In a blog post published Tuesday, Coinbase Chief Executive Brian
Armstrong said the crypto industry has been hit by "fallout from
unscrupulous actors." He warned that "there could still be further
contagion."
"We need to make sure we have the appropriate operational
efficiency to weather downturns in the crypto market, and capture
opportunities that may emerge," he said.
As of the end of September, Coinbase had about 4,700 employees,
up almost 70% from a year earlier, according to a shareholder
letter. The latest round of layoffs would affect about 20% of
staff, based on that count.
Mr. Armstrong acknowledged the company's round of layoffs in
2022.
"In hindsight, we could have cut further at that time," he said.
"While some of the factors that have brought us to this point are
beyond our control, accountability rests with me as the CEO."
The company expects operating costs to fall by about 25% from a
year ago in the quarter ending March 31, Coinbase said in a
securities filing. The company said it expects to incur about $149
million to $163 million as part of a restructuring plan meant to
cut costs.
Mr. Armstrong said the company will exit some projects that
"have a lower probability of success," and that teams on other
projects will continue to operate with fewer employees.
The company remains well capitalized, Mr. Armstrong said, "and
crypto isn't going anywhere."
"Over the last decade, Coinbase has made it through multiple
bear markets using this process," he said. "This is the first time
we've seen a crypto cycle coincide with a broader economic
downturn, but otherwise it is similar."
Shares of Coinbase fell almost 4%, to $36.88, in premarket
trading. The stock has fallen 83% over the past 12 months.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
January 10, 2023 07:27 ET (12:27 GMT)
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