Share this article
Coinbase Cuts Around 20% of Workforce as Crypto Winter Rages
The exchange expects the restructuring to cost $149 million to $163 million.
Updated May 9, 2023, 4:05 a.m. Published Jan 10, 2023, 11:58 a.m.
Crypto exchange Coinbase (COIN) said it is planning to reduce its headcount by around 950 employees as part of a restructuring that it expects to be complete by the end of the second quarter.
This figure would amount to around 20% of Coinbase's workforce, which sits at about 4,700 according to the company's website.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In a U.S. Securities and Exchange Commission filing on Tuesday, Coinbase said it is responding to "ongoing market conditions impacting the crypto economy."
The company expects the restructuring to cost $149 million to $163 million, including $58 million to $68 million in cash charges related to employee severance.
Coinbase began shedding jobs last June when crypto's bear market started to take hold. CEO Brian Armstrong said at the time that the company had "grown too quickly" during the crypto bull market, expanding to more than 5,000 employees from 1,250 at the start of 2021.
The firm began by cutting 1,100 jobs, equivalent to 18% of its workforce at the time, followed by another 60 in November, as the crypto winter grew even colder with the collapse of rival exchange FTX.
Armstrong told CNBC on Tuesday that the company came to the decision after looking at various stress tests for Coinbase’s annual revenue. He added that “it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario” and that there was “no way” to do so without reducing headcount.
Coinbase will also be shutting down several projects with a “lower probability of success."
CoinDesk estimates that since last April, nearly 27,000 jobs have been lost across the crypto industry, based on media reports and press releases.
Shares of Coinbase were recently down 1% at $38.
Read more: Crypto Bank Silvergate Shares Plunge 46% After $8.1B Withdrawal in Q4 Prompts 200 Job Cuts
UPDATE (Jan. 10, 12:24 UTC): Adds additional details, context throughout. Updates stock price.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Coinbase agrees to buy The Clearing Company to deepen prediction markets push
The deal brings a team with specialized experience building event-based trading systems, including veterans from Polymarket and Kalshi.
What to know:
- Coinbase is acquiring The Clearing Company, a startup with experience in prediction markets, to help grow its newly introduced platform.
- The deal brings in a team with specialized experience building event-based trading systems, including veterans from Polymarket and Kalshi.
- The acquisition is part of Coinbase's plan to become an "Everything Exchange", offering a wide range of trading options, including novel cryptocurrencies, perpetual futures contracts, stocks, and prediction markets.
Top Stories
