Coinbase to cut 1,100 jobs amid crypto turmoil

Shares of Coinbase have lost roughly 80 per cent of their value this year. PHOTO: REUTERS

BENGALURU (REUTERS) - Cryptocurrency exchange Coinbase Global said on Tuesday (June 14) it would slash 18 per cent of its workforce, or about 1,100 jobs, to cut costs amid the financial market downturn.

The cryptocurrency market has been roiled by extreme volatility due to economic and geopolitical uncertainties such as rising inflation and the impact of the Ukraine war, with bitcoin tumbling as much as 14 per cent on Monday after crypto lender Celsius Network froze withdrawals and transfers.

"We appear to be entering a recession after a 10-plus year economic boom. A recession could lead to another crypto winter, and could last for an extended period," said chief executive Brian Armstrong in a blogpost.

Without giving details on which departments would be impacted, Mr Armstrong said employees would receive an e-mail "in the next hour" from human resources informing them if they had been affected by the layoff.

Shares of Coinbase, which have lost roughly 80 per cent of their value this year, fell about 7 per cent in pre-market trading.

Earlier this month, Coinbase said it would extend a hiring freeze and rescind a number of accepted offers in order to deal with current macroeconomic conditions.

In a filing on Tuesday, the company said it expects to incur about US$40 million (S$55.6 million) to US$45 million in total restructuring expenses, substantially related to employee severance and other termination benefits.

The job cuts are expected to be completed by the second quarter of 2022.

Coinbase last month reported a 35 per cent fall in total revenue to US$1.17 billion for the three months ended March 31, missing analysts' estimates.

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