Coinbase to lay off 20% of staff in third round of layoffs

The cryptocurrency exchange Coinbase will terminate employment relations with 950 employees as part of a 25% reduction in operating expenses. Since June 2022 this will be the third wave of layoffs affecting 2,110 workers.

Implementing the initiative will require $149-163 million for severance and other payments. The platform will reflect the additional costs in the first-quarter 2023 results.

“We need to cut costs to improve the odds of success under any scenario,” explained the exchange’s CEO, Brian Armstrong.

The top executive did not rule out further contagion in the industry stemming from the actions of unscrupulous players.

The cash-strapped OTC platform Genesis Trading laid off 30% of its staff. The WSJ reported that the firm is considering for bankruptcy.

In June 2022, Coinbase laid off 1,100 employees (18% of the workforce). In November, the exchange took a similar decision affecting 60 staff.

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