In its third round of layoffs since last year, Coinbase Global Inc. said on Tuesday that it would cut its workforce by around 950 workers as part of a reorganisation strategy, reported Reuters.
The company anticipates restructuring costs to range between $149 million and $163 million.
More than a trillion dollars were lost in the cryptocurrency industry last year due to rising interest rates and concerns about an impending recession.
The downturn, including Celsius Network and Three Arrows Capital, also prompted significant business closures.
The greatest hit came after crypto exchange FTX declared bankruptcy in November. Due to its quick decline, major exchanges’ user money-holding practices are now under intense regulatory scrutiny.
“We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion,” Coinbase Chief Executive Brian Armstrong said in a blog post, according to Reuters.
“We will be shutting down several projects where we have a lower probability of success.”
Coinbase stated that it had nothing else to say regarding the programmes it intended to halt.
Those layoffs come on the heels of news that Genesis, a cryptocurrency lender, laid off an additional 30 per cent of its workforce last week, marking the second round of job cuts in less than six months.
This year has seen more problems for the cryptocurrency industry, including declining deposits, job losses, and several legal obstacles.
Coinbase cut the size of its recruiting and institutional onboarding teams by more than 60 in November after laying off 1,100 employees – or 18 per cent of its staff, in June,
In keeping with the sector’s declining fortunes, the company’s shares lost about 86 per cent of their value last year.
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