Coinbase, a leading cryptocurrency exchange, has announced that it will be cutting approximately 20% of its workforce, or 950 jobs, as part of its ongoing restructuring efforts.
The company says it expects to incur about $149 million to $163 million in restructuring expenses.
This move follows two previous rounds of layoffs at Coinbase last year, with 18% of its workforce or 1,100 jobs cut in June, and over 60 jobs cut in November. The company's shares has also declined by approximately 86% in the past year.
This move comes as a result of the current challenging environment faced by the entire cryptocurrency industry, with the sector experiencing a crisis of confidence and a sharp decline in trading volume.
The situation has been exacerbated by the economic downturn and rising interest rates, leading to the wipeout of more than a trillion dollars from the crypto market. The bankruptcy filing of another crypto exchange, FTX, further compounded the industry's struggles.
In addition to the job cuts, the company stated that it will also be reviewing its ongoing projects and operations to focus on areas that have a higher chance of success. As a result, it will be consolidating its operations and streamlining its overall business model.