Cryptocurrencies: a new wave of layoffs at Coinbase

(Reuters) – Cryptocurrency platform Coinbase Global said on Tuesday it plans to cut its workforce by about 20%, or 950 employees, as part of a restructuring plan that has already seen two waves of layoffs since last year.

The company said it expects restructuring costs to range from $149 million to $163 million (€138.7 million to €151.7 million).

In the stock market, Coinbase’s title rose over 3% following these announcements.

“The entire industry is in a crisis of confidence and transaction volume remains very low, this job cut is a reflection of the current challenging environment,” said Owen Lau, an analyst at Oppenheimer.

Last year, rising interest rates and fears of an economic downturn led to the loss of more than a trillion dollars in the cryptocurrency industry. The collapse also forced key industry players such as Three Arrows Capital and Celsius Network to file for bankruptcy.

However, the hardest hit came with the bankruptcy of FTX, the largest cryptocurrency exchange, and fraud allegations against its founder, which damaged investor confidence in the industry and sparked calls for more regulations.

“We have also seen the consequences of unscrupulous players in the industry and there could still be more contagion,” Coinbase CEO Brian Armstrong said in a blog post.

“We will stop several projects where we have less chance of success,” he added.

Coinbase has said it is no longer commenting on its restructuring plan.

In November, the group cut more than 60 jobs on its institutional investor recruitment and admissions teams after cutting 1,100 jobs, or 18% of its workforce, in June.

(Report by Magna Signy in Bengaluru; with input from Niket Nishant; French version by Augustin Turpin, edited by Blandine Hainaut)

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