Coinbase to cut jobs in worldwide restructuring
Cryptocurrency exchange Coinbase is set to shed nearly 1,000 employees worldwide as part of its latest restructuring plans. This follows an earlier round of downsizing last year, in which the company let go of around 20% of its workforce due to a downturn in the crypto market. The firm had 4,706 full-time staff in the Autumn of 2022, including those in Europe. The move is expected to cost up to $163m, including compensation awards to staff facing the sack.
Crypto industry reflects the struggles of the crypto market
Coinbase has also suffered through a tough year, reflected by the sharp drop in its share price, which has fallen by as much as 83% over the past 12 months. Coinbase is one of the world’s largest cryptocurrency exchanges, with over 100 million users in the third quarter of 2022. The restructuring is indicative of the struggles faced by the crypto sector as a whole as it seeks to weather the storm of falling prices and general economic uncertainty.
Job losses could lead to wider ripple effect in UK tech sector
Job losses are likely to have a ripple effect on the UK tech sector, especially as Coinbase’s London operations, which manages both retail and institutional clients, will also be affected. The regulatory future of the sector is also up in the air, with governments scrambling to put in place regulatory regimes to manage the fast-evolving space. With Coinbase’s position as a market leader, its struggles are likely to have wider cross-industry ramifications.
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