The Clap
Coinbase (NASDAQ:COIN) will cut around 20% of its workforce following the crypto market’s decline in 2022.
What
The exchange intends to cut around 950 jobs in order to preserve cash in uncertain market conditions.
This will be the second wave of job cuts, following an 18% workforce slash in June that dropped the total number of employees to around 4,700.
So What
Coinbase CEO Brian Armstrong stated that the company should have done more during the year in the midst of the crypto market crash. The job cuts will result in $149mn – $163mn in expenses during Q1 2023.
The collapse of the crypto exchange FTX significantly increased pressure on the sector, forcing regulators to monitor the market going forward closely.
Now What
The company will reduce its expenses in order to better cope with any scenarios during the year.
