Coinbase Global, the cryptocurrency exchange, will cut about 1,100 jobs, or 18 percent of its workforce, to reduce expenditure.
Coinbase expects to incur about $40 million to $45 million in total restructuring expenses, largely related to employee severance and other termination benefits.
“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” Coinbase CEO Brian Armstrong said in a blog.
Coinbase employees who are departing today will receive:
Minimum of 14 weeks of severance plus an additional 2 weeks for every year of employment beyond 1 year
4 months of COBRA health insurance in the US, and 4 months of mental health support globally
Access to Talent Hub, where members of Coinbase’s team will work to connect with you with open positions at other firms (including portfolio companies from Coinbase Ventures and other top crypto VC funds)
Bitcoin, the world’s largest cryptocurrency, nosedived as much as 14 percent on Monday after crypto lender Celsius Network froze withdrawals and transfers.
Brian Armstrong said employees would receive an email informing them if they had been affected, without giving further details.
Coinbase had earlier this month said it would extend a hiring freeze and rescind a number of accepted offers to deal with current macroeconomic conditions.
The crypto market meltdown has forced companies like BlockFi and Crypto.com to slash hundreds of jobs.
Coinbase had ramped up hiring when the crypto market scaled new highs during the pandemic, growing headcount by nearly four times in just five quarters.
“This level of headcount growth over five quarters was too ambitious, especially given that the company has lived through a crypto winter and knows how regularly volatile this market can be,” KBW analyst Kyle Voigt said in a note to clients.