Crypto exchange Coinbase is set to lay off nearly 1,000 employees as the New York-listed company seeks to cut costs during a restructuring.
It is the latest in a string of successive job cuts at the company after laying off around 20% of its workforce last year amid a crypto market downturn.
The company had 4,706 full-time employees in the fall of last year, according to company filings, including a number in Europe. A spokesperson could not confirm how many UK employees were to be made redundant. The restructuring is expected to cost between $149 million and $163 million, including up to $95 million in compensation for laid-off staff.
A Coinbase spokesperson said: “Faced with increasingly difficult economic conditions, we have made the difficult decision to initiate layoff processes with a group of tentatively selected employees in Europe to reduce the size of our teams to strengthen our business and ensure we can overcome anything else that comes our way.
“Europe remains a priority market for Coinbase and our commitment to bringing the benefits of crypto to this region is unchanged in light of these events.”
There were at least 27,000 layoffs at crypto companies globally in 2022, according to estimates by news site CoinDesk, as the crash in the price of Bitcoin led to the collapse of more than a dozen businesses. crypto firms, including the Bahamas-based exchange, FTX. Bitcoin’s price has fallen 54% in the past 12 months, while Coinbase’s stock price has fallen 83% over the same period, causing founder Brian Armstrong’s wealth to plummet by 6, $3 billion, based on his 19% ownership of the company.
Coinbase is one of the largest cryptocurrency exchanges in the world, with over 100 million users as of Q3 2022.