Coinbase Slashes Another 20% of Its Workforce, Shares Up

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Published January 10, 2023

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Shares of cryptocurrency exchange Coinbase (NASDAQ: COIN) gained after the company revealed it would cut 950 jobs, about 20% of its workforce, in its third round of layoffs in six months.

Key Takeaways

Coinbase (NASDAQ: COIN) announced it would cut 950 jobs, about 20% of its workforce, to cut costs in the wake of current market conditions following the collapse of the FTX exchange.
In the last six months, Coinbase has had three rounds of staff layoffs.
CEO Brian Armstrong blames the FTX collapse, adding that there are likely more “shoes to drop.”

Coinbase Shares Are Up

In response to the cost-cutting decision, Coinbase shares went up 5% to $40.54 at 1:25 p.m. New York time. The stock gains come amid a recent rally in crypto stocks, which tend to follow gains in the crypto markets. Top cryptocurrency Bitcoin, which was down almost 60% in the past year, has recovered in the past week, sparking gains in some crypto stocks and a short squeeze for investors who had bet on their decline.

CEO Blames FTX Collapse

In an e-mail to employees posted on the company's blog, CEO Brian Armstrong blamed “the fallout from unscrupulous actors in the industry” for the turmoil in crypto markets, a reference to the collapse of multi-billion dollar collapse of crypto exchange FTX, whose former CEO Sam Bankman-Fried has been charged with money laundering and fraud.

The Bottom Line

There has been turmoil in the crypto industry since the fallout from FTX. A number of crypto firms have announced the termination of their employees, including Genesis, Silvergate, and Huobi, citing the negative environment that has developed since FTX collapsed.

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Coinbase. ''A message from CEO and Co-Founder, Brian Armstrong, to Coinbase employees''
Coinbase.com. "A message from CEO and Co-Founder, Brian Armstrong, to Coinbase employees."

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