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Coinbase announced that it would cut approximately 950 jobs or 20% of its workforce as part of a restructuring plan.
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This is the third round of layoffs at the cryptocurrency exchange since last January.
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The shares of the company were up 3.3% to $39.52, and it stated that it expects to incur approximately $149 million to $163 million in restructuring expenses.
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"The entire industry is going through a crisis of confidence and trading volume remains very weak,"
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"This job cut is a reflection of the current challenging environment," Oppenheimer analyst Owen Lau said.
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Owen Lau, an Oppenheimer analyst, stated that this job reduction resulted from the current complex environment.
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Over a trillion dollars were lost to the crypto sector last year due to rising interest rates and fears of an economic downturn.
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The more significant blow was, however, when crypto exchange FTX filed bankruptcy protection in November.
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"We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion," Coinbase Chief Executive Brian Armstrong said in a blog post on Tuesday.