Coinbase Slashes Another 20% of Its Workforce, Shares Up

Coinbase credit card with logo

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

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

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