Crypto exchange Coinbase to slash 950 jobs

Coinbase said on Tuesday that it was cutting 950 jobs as the industry struggles in the aftermath of the FTX collapse.

In a filing with the Securities and Exchange Commission, the cryptocurrency exchange said the cuts were in response "to the ongoing market conditions impacting the cryptoeconomy, as well as ongoing business prioritization efforts".

Coinbase estimated that it will incur around $149m to $163m in total restructuring expenses, with the plan expected to be "substantially complete" by the second quarter of this year.

Chief executive and co-founder Brian Armstrong told employees: "In 2022, the crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion.

"As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always panful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount."

As part of the job cuts, the company will be shutting down a number of projects where it has "a lower probability of success", Armstrong said.