Coinbase Global Inc (COIN)

[Investors3]

Coinbase to Lay Off More Workers in Second Round of Cuts
January 10 2023 - 07:42AM
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."...

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