(New York) The Coinbase cryptocurrency exchange platform announced on Tuesday that it was parting ways with 950 employees, or just over 20% of its workforce, citing the fall in virtual currencies and the impact of the rout of “little players”. scrupulous”.
The group indicates on its site that it has more than 4,700 employees worldwide.
“In 2022, the cryptocurrency market trended downward, as did the macro economy in general,” Coinbase CEO Brian Armstrong said in a message to employees.
“We also suffered the fallout [des activités, NDLR] unscrupulous players in the industry, and the contagion could continue,” Adams added, referring to the spectacular collapse of cryptocurrency exchange FTX, which filed for bankruptcy in November.
Its co-founder and former boss, Sam Bankman-Fried, is being prosecuted by American justice, in particular for fraud and criminal association.
Coinbase had cut 18% of its workforce last June, already suffering the jolts of the cryptocurrency market at the time.
This new social plan, which must be completed by the second quarter, will cost between 149 and 163 million dollars to the company, according to estimates provided in a document sent to the American stock market policeman, the SEC.
Coinbase expects a roughly 25% reduction in operating expenses in Q1 2023 compared to the prior quarter.
NASDAQ-listed Coinbase stock fell 2.7% in electronic trading ahead of the opening of Wall Street.
The dismissed employees will receive financial compensation. Those stationed in the United States will receive at least 14 weeks of their salary, health coverage and other salary benefits.
Other cryptocurrency exchanges, including Kraken and Gemini, have announced layoffs in recent weeks.
More broadly, many American technology groups have recently announced staff reductions, including the IT group Salesforce, Meta (Facebook, Instagram, WhatsApp), Amazon and Twitter.