NEW YORK – Coinbase Global is firing about 950 employees, or about 20 per cent of its workforce, as the worsening crypto slump spurs another round of layoffs at the biggest US digital asset exchange. 

Co-founder and chief executive Brian Armstrong announced the fresh round of job reductions in a blog post on Tuesday, saying the steps were needed to weather the industry downturn.

In June, Coinbase announced it would lay off 18 per cent of its workforce, the equivalent of roughly 1,200 employees. It eliminated another 60 positions in November. It will now shut down several projects.

The company expects to book US$149 million (S$199 million) to US$163 million of restructuring charges, according to a statement on Tuesday.

The overhaul will be “substantially complete” by the end of the second quarter, it said.

As a result, adjusted earnings for the full year ended Dec 31, 2022, are expected to be around negative US$500 million.

Crypto’s bear market is entering its second year, and the industry has suffered a series of meltdowns that hurt its outlook, most lately the bankruptcy of rival exchange FTX. With revenues falling and profits evaporating, companies across the sector have resorted to steep cost cuts in past months. 

Coinbase’s shares tumbled 86 per cent in 2022, dropping more than market bellwether Bitcoin, which slumped 64 per cent. The stock fell about 2.3 per cent before the start of regular trading in the United States on Tuesday. 

BLOOMBERG