US-based Coinbase on Tuesday announced a restructuring plan where it will reduce its workforce by approximately 18% or 1,100 employees. The layoff is part of the crypto exchange's plan to manage its operating expenses in response to current market conditions and ongoing business prioritization efforts.
In a SEC filing, Coinbase said "the plan involves a reduction of the Company’s workforce by approximately 1,100 employees, representing approximately 18% of the global workforce as of June 10, 2022."
Following this, Coinbase expects to have approximately 5,000 total employees as of the end of its current fiscal quarter on June 30, 2022.
The largest cryptocurrency exchange in the US expects to complete the layoffs in the second quarter of 2022.
Coinbase said, "in connection with these actions, the company estimates that it will incur approximately $40-45 million in total restructuring expenses, all of which are future cash-based expenditures and substantially all of which are related to employee severance and other termination benefits."
Further, Coinbase said in its filing, "the foregoing estimated amounts do not include any non-cash charges associated with stock-based compensation."
Coinbase expects to recognize an immaterial reduction of stock-based compensation as it does not anticipate materially modifying the affected employees' stock awards to accelerate the vesting of such awards or to otherwise modify such awards in a manner that would result in such charges, it said in the filing.
Coinbase expects to recognize substantially all of these charges also in the second quarter of the current year.
As per CoinMarketCap's real-time performance, currently, the market cap of global cryptocurrency is around $940.25 billion. On Monday, the market erased its $1 trillion valuation. Bitcoin extended its losses and tumbled 6.5% and was struggling to hold the $22,000-mark and Ether was near $1,220.
Bitcoin is the largest cryptocurrency with a dominance of 45% and a market cap of around $422.72 billion currently, while Ether is the second-largest crypto with a dominance of 15.5% and a market cap of around $145.43 billion.
In the last seven days, Bitcoin has tumbled by nearly 24% and Ether shed over 30% taking into consideration its real-time performance.
