Coinbase cuts jobs in latest fallout from crypto crisis

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Cryptocurrency exchange Coinbase is cutting 950 jobs as the industry continues to struggle following the collapse of FTX.

Brian Armstrong, chief executive of Coinbase, said on Tuesday it would cut 25% of its employees, to ensure it could weather downturns in the crypto market.

Armstrong added that the company would also shut down several projects where the company had a lower probability of success, without providing further details.

The US-listed exchange becomes the latest crypto company to announce layoffs so far this year. Last week, exchange Huobi announced it would cut 20% of its staff, while US crypto-focused bank Silvergate said it would cut around 40% of its staff and the asset lender Genesis Digital announced that it was cutting the jobs of 30 percent of its employees.

Coinbases’ announcement comes as the collapse of FTX and the arrest of founder Sam Bankman-Fried continue to ripple through the crypto industry. The collapse of FTX has prompted regulators to step up their scrutiny of the sector.

Dark times also weed out bad companies, as seen right now, Armstrong said, adding that Coinbase was well capitalized and cryptocurrencies weren’t going anywhere.

Shares of New York-listed Coinbases rose 4% pre-market.

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