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Coinbase, the cryptocurrency exchange, is to cut 950 jobs, or around 20% of its global workforce.
The company announced the third round of layoffs in a year as part of a restructuring plan.
The move follows the sharp decline in the value of the cryptocurrency and has been blamed for this as well as the slowing global economy.
The CEO and co-founder of the company said that the impact of bad actors in the industry has also affected Coinbase.
“In 2022, the crypto market trended down along with the broader macro economy. We also saw the fallout from unscrupulous industry players, and there could still be further contagion,” said Brian Armstrong in a blog post on the company’s website.
Another cryptocurrency exchange, FTX, has filed for bankruptcy, and its founder Sam Bankman-Fried has pleaded not guilty to stealing billions of dollars in cash from its customers.
The company’s downfall has led to calls for tougher regulatory oversight.
FTX wasn’t alone in facing hurdles as crypto stocks tumbled in the year that key industry players such as Three Arrows Capital and Celsius Network were toppled. .
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Costs of around $149m (£122.62m) to $163m (£134.14m) are expected to result from the company’s reorganization, Coinbase said.
But Mr. Armstrong was adamant his business and crypto are going nowhere.
“Coinbase is well capitalized and crypto isn’t going anywhere. In fact, I think recent events will end up benefiting Coinbase greatly,” its blog post said.
This is the third time in a year that jobs have been lost.
In November, it cut more than 60 jobs in its recruiting and institutional onboarding teams and cut 1,100 jobs, or 18% of its workforce in June.
Mr Armstrong said he could have cut more jobs at the time.
Some business sectors will be closed and others will operate with fewer workers as part of the downsizing.
“We will be closing several projects where we have a lower probability of success. Affected teams will receive communication about this today,” Mr. Armstrong said.
“Our other projects will continue to operate as normal, but with fewer people on the team.”
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