Coinbase to cut 20% jobs, abandon ‘several’ projects to weather downturns in crypto market

$Coinbase (COIN.US)$ plans to cut 950 jobs, or about 20% of its workforce, and shut down “several” projects as the U.S. crypto exchange giant looks to reduce its expenses to increase its “chances of doing well in every scenario.”
This is the second round of major layoffs at the crypto exchange, which eliminated 18% of its workforce, or nearly 1,100 jobs last June, but there was “no way to reduce our expenses significantly enough, without considering changes to headcount,” Coinbase co-founder and chief executive Brian Armstrong wrote in a blog post Tuesday.
The moves are part of the company’s efforts to cut its operating expenses by about 25% quarter over quarter, he said. The company estimates that it will incur approximately $149 million to $163 million in total restructuring expenses, consisting of approximately $58 million to $68 million in cash charges related to employee severance and other termination benefits, it disclosed (PDF) in an 8K filing with the SEC Tuesday.
In the filing, Coinbase also disclosed that it expects its adjusted EBIDTA losses for the year ending in December 31, 2022 to be within “the negative $500 million loss guardrail” it set last year.
As with firms in other industries, crypto firms are aggressively undertaking major decisions to survive the downturn in the broader market, which has reversed much of the gains from the 13-year bull run. Kraken said in November that it plans to lay off 1,100 people, or 30% of its workforce.
Shares of Coinbase are down 83% in the past year.
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