Coinbase cuts 1,100 jobs amidst crypto meltdown

Cryptocurrency exchange Coinbase Global Inc has announced that said it would cut 1,100 jobs.

That jobs slash represents an 18% of Coinbase’s workforce.

The cryptocurrency market has been walloped by extreme volatility due to economic and geopolitical uncertainties such as rising inflation and the impact of Ukraine war.

Bitcoin tumbled as much as 14% on Monday after crypto lender Celsius Network froze withdrawals and transfers.

Coinbase CEO Brian Armstrong without giving details on which departments would be impacted, said employees would receive an email “in the next hour” from HR informing them if they had been affected by the layoff.

Shares of Coinbase, which have lost roughly 80% of their value this year, fell about 7% in premarket trading.

Earlier this month, Coinbase had extended a hiring freeze and rescinded a number of accepted offers in order to deal with current macroeconomic conditions.

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

The job cuts are expected to be completed by the second quarter of 2022.