US-based Coinbase on Tuesday announced a restructuring plan where it will cut its workforce by about 18%, or 1,100 employees. The layoffs are part of the crypto exchange’s plan to manage its operating expenses in response to current market conditions and ongoing business prioritization efforts.
In its SEC filing today, coinbase “The plan includes a reduction in the Company’s workforce of approximately 1,100 employees, representing approximately 18% of the Company’s global workforce as of June 10, 2022,” it said.
Following this, Coinbase expects approximately 5,000 total employees by the end of its current fiscal quarter on June 30, 2022.
biggest cryptocurrency In the US, the exchange expects to complete the layoffs in the second quarter of 2022.
Coinbase said, “In connection with these actions, the company anticipates that there will be approximately $40 million to $45 million in total restructuring expenses, all of which are future cash-based expenses and all of which will result from employee layoffs and other terminations.” Related. Benefits.”
In addition, Coinbase said in its filing, “the foregoing estimated amounts do not include any non-cash fees associated with stock-based compensation.”
Coinbase expects to identify a significant shortfall of stock-based compensation as it seeks to accelerate the vesting of such rewards or modify such rewards to materialize stock rewards of affected employees. does not expect to modify the form, which will result in such charges. in filing.
Coinbase expects to largely recognize all of these charges in the second quarter of the current year as well.
Currently, the global cryptocurrency market cap is approximately $940.25 billion, according to real-time performance from CoinMarketCap. The market erased its $1 trillion valuation on Monday. Bitcoin extended its losses and fell 6.5% and was struggling to maintain the $22,000 mark and Ether was nearing the $1,220 mark.
Bitcoin is the largest cryptocurrency with a dominance of 45% and currently has a market cap of approximately $422.72 billion, while Ether is the second largest cryptocurrency with a dominance of 15.5% and a market cap of approximately $145.43 billion.
Over the past seven days, bitcoin is down by about 24% and ether is down by over 30%, taking into account its real-time performance.