In order to streamline its operations, Coinbase intends to eliminate about 950 positions by the end of the second quarter. Including $58 million in cash charges for employee severance, the company estimates that the restructuring will cost between $149 million and $163 million. On Tuesday, Armstrong told CNBC that the decision was made after the company considered several revenue stress tests for Coinbase.
In June of last year, as the crypto bear market began to take hold, Coinbase started cutting workforce. When the company grew to more than 5,000 employees from 1,250 at the beginning of 2021, CEO Brian Armstrong complained that the expansion had occurred “too quickly” during the bull run in the cryptocurrency market.
Armstrong acknowledged that the staff cuts were difficult for both Coinbase and the employees impacted, but felt that they were necessary in order to remain sustainable in the future. As a result of the staff reduction, Coinbase was able to restructure its organization and prioritize the long-term sustainability of its business.
