In the words of Brian Armstrong, CEO of Coinbase, “I've made the difficult decision to reduce our operating expenses by about 25%, which includes letting go of about 950 people. All impacted team members will be informed by today.”
Crypto exchange Coinbase announced its plans to cut 20% of jobs as part of its restructuring process.
In the blog post, Armstrong claimed that although Coinbase is well-capitalized, the bearish crypto market, accompanied by an economic downturn, has forced the exchange to reduce its expenses. As a result, the firm seeks to lower operational costs by 25% before the end of Q2, 2023.
Besides laying off 950 employees, Coinbase will close down projects that have a low probability of success.
Coinbase expects the restructuring procedure to cost between $149M to $163M. This includes paying $58M to $68M to affected employees as severance pay.
The firm has agreed to pay a minimum of 14 weeks’ worth of base salary to the affected workers who reside in the US, with Armstrong adding,
“To those of you who will be leaving, please know that this is not a reflection of your work or contributions to Coinbase.”
