In another sad development with regards to staff turnover in tech companies, trading platform Coinbase has announced another round of layoffs. This batch of firings will see about 950 people or 20% of its workforce exit the company. This is the second round of layoffs for the company in less than a year, after it laid off 1,100 jobs, or 18% of its global workforce, in June.
Citing adverse economic conditions and disruptions within the cryptocurrency markets as the reason for the layoffs, Coinbase expects to spend about $58 million to $68 million in charges related to employee severance and other termination benefits and an additional $149 million to $163 million for additional restructuring costs.
The value of Bitcoin dropping by almost 60% over the past year has affected Coinbase adversely being a crypto company, and the collapse of FTX exchange also worsened the sectors fortunes.
The recent layoffs are part of Coinbase’s restructuring plan, which was expected to be completed by the second quarter of 2022.
In Japan for instance, even though the country has loosened policy on crypto, the company says it is winding down the majority of its operations, eliminating most of the roles in its Japan entity.
Coinbase was founded in 2012 and is a remote-first company with no physical headquarters like traditional companies.
