Coinbase lays off 1,100 employees amid crypto markets crash

The company said it expects to incur about $40 million to $45 million in total restructuring expenses, substantially all related to employee severance and other termination benefits. This comes amid crash in crypto market

New Delhi: Coinbase, the world's third-largest cryptocurrency exchange, announced on June 14 that it will lay off 18 percent of its employees or about 1,100 jobs as the crypto crisis worsens. Bitcoin is currently trading at roughly $21,900.

The layoffs come a day after Bitcoin fell as much as 14% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers, in the latest sign of the financial market downturn hitting the cryptosphere.

Coinbase said earlier this month that it would extend its hiring freeze for the foreseeable future and rescind a number of accepted offers.

"Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn....but first I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me," Coinbase CEO Brian Armstrong's blog read.

1/ Today I shared that I've made the difficult decision to reduce the size of our team at Coinbase by about 18%. The broader market downturn means that we need to be more mindful of costs as we head into a potential recession.

— Brian Armstrong - barmstrong.eth (@brian_armstrong) June 14, 2022

In a filing on Tuesday, the company said it expects to incur about $40 million to $45 million in total restructuring expenses, substantially all related to employee severance and other termination benefits.

Coinbase revealed its plans to add 2,000 people across product, engineering, and design in 2022 at the beginning of this year. The corporation had set a goal of hiring 1,000 people in India as part of its expansion.