Cryptocurrency trading platform Coinbase will lay off 950 people, about 20% of its global workforce.
The company announced its third round of layoffs in a year as part of a restructuring plan.
the move followed drop in value Cryptocurrencies, and have been blamed for this as well as a global economic slowdown.
The influence of bad actors in the industry has also hit Coinbase, the company’s CEO and co-founder said.
“Cryptocurrency markets are on a downward trend along with the broader macro economy through 2022. We have also seen the impact of wrongdoers in the industry, and further contagion remains possible,” Brian Armstrong said in a blog post on the company’s website said in.
Another cryptocurrency exchange, FTX, file for bankruptcyand its founder Sam Bankman-Fred pleaded not guilty Steal billions of dollars in client funds.
Company collapse sparks appeal Stricter Regulatory Oversight.
FTX is not alone in facing obstacles as cryptocurrency values have dropped over the past year, with major players in the industry such as Three Arrows Capital and Celsius Network topped the list.
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Coinbase said the cost of the company’s reordering was around $149 million (£122.62 million) to $163 million (£134.14 million).
But Mr Armstrong is adamant that nothing will come of his company and cryptocurrencies.
“Coinbase is well-capitalized and nothing is going to go anywhere with cryptocurrencies. In fact, I believe recent events will ultimately benefit Coinbase greatly,” his blog post said.
This is the third layoff in a year.
In November, it cut more than 60 jobs across its recruiting and agency onboarding teams, cutting 1,100 jobs, or 18% of its headcount in June.
Mr Armstrong said he could have cut more jobs at the time.
As part of the layoffs, some business areas will close, while others will operate with fewer employees.
“We will be closing several projects that have a low probability of success. The affected teams will be notified about this today,” Mr Armstrong said.
“Our other projects will continue to operate normally, just with fewer people on the team.”