Coinbase (NASDAQ:COIN) layoffs are big news on Tuesday with the company saying it plans to cut 20% of its workforce.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the Coinbase layoffs will cover roughly 950 employees. This has it expecting to suffer $149 million to $163 million in restructuring expenses related to the job cuts.
Coinbase says that the restructuring plan behind the layoffs will be complete by the start of Q2 2023. Those watching its finances will note that it expects to face the financial charges mentioned above in the first quarter of the year.
What’s Behind the Coinbase Layoffs?
Coinbase blames the layoffs, as well as its current restructuring plan, on “ongoing market conditions impacting the cryptoeconomy.” It also contributes its actions to “ongoing business prioritization efforts.”
These changes from Coinbase also come alongside preliminary earnings results for the full year of 2022. What’s worth noting there is the company’s Adjusted EBITDA for the period will be “within the negative $500 million loss guardrail,” it previously expected.
Brian Armstrong, CEO of Coinbase, said the following about the layoffs to CNBC.
“Every company in Silicon Valley felt like we were just focused on growth, growth, growth, and people were almost using their headcount number as a symbol of how much progress they were making. The focus now is on operational efficiency — it’s a healthy thing for the ecosystem and the industry to focus more on those things.”
COIN stock is up 5.6% as of Tuesday morning.
Investors can find more of the latest stock market news below!
We’ve got all of the biggest stock stories traders need to know about on Tuesday! That includes details on mortgage buydowns, SoFi (NASDAQ:SOFI) stock, and this morning’s biggest pre-market stock movers. You can find more on these matters at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.