Crypto exchange Coinbase announced it would lay off approximately 20 percent of its workforce in its second round of job cuts in less than a year.
The crypto exchange plans to cut 950 jobs, according to a blog post on its website. Coinbase previously laid off 18 percent of its workforce in June 2022 citing a need to manage costs after growing “too quickly.”
Coinbase said the ongoing crypto market downturn is the primary reason for this round of cuts.
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario,” wrote Coinbase CEO Brain Armstrong in the post. “While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.”
The layoffs, along with other restructuring measures, are part of Coinbase’s efforts to bring operating expenses down by 25 percent for the quarter ending in March, according to its latest regulatory filing.
“Despite everything we’ve been through as a company and an industry, I’m still optimistic about our future and the future of crypto,” Armstrong wrote. “Progress doesn’t always happen in a straight line, and sometimes it can feel like we’re taking two steps forward and one step back. But just like we saw with the internet, the most important companies not only survive but thrive during down markets by being rigorous with cost management and continuing to build innovative products.”