Coinbase to lay off 20% of workforce meanwhile BTC continues to hover above the $17k mark
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In order to survive market downturns, Coinbase will slash 20% of its workforce and scrap "many" initiatives.
In order to lower its costs and improve its "chances of doing well in every scenario," Coinbase wants to eliminate 950 jobs, or around 20% of its workforce, and shut down "multiple" initiatives.
Crypto lender Genesis eliminated about one-third of its staff last week, and crypto exchange Huobi said it plans to lay off about one-fifth of its staff. Digital-asset companies, including Coinbase, laid off employees last summer after the collapse of two sister cryptocurrencies and a crypto hedge fund shattered the values of coins.
Mr. Armstrong said that those impacted by the layoffs would be informed Tuesday and that U.S. employees would receive a minimum of 14 weeks' pay.
“Despite everything we’ve been through as a company and an industry, I’m still optimistic about our future and the future of crypto,” Mr. Armstrong said.
The layoffs are part of a restructuring plan, which Coinbase expects to be largely completed by the second quarter, according to a Securities and Exchange Commission filing. Coinbase estimated that it will have between $149 million and $163 million in total restructuring costs, with $58 million to $68 million in expenses related to employee severance benefits.
Coinbase shares rose 7% in afternoon trading. They plummeted more than 80% in 2022.
Cryptocurrency prices today: Bitcoin continues to hover above the $17000 mark.
On Tuesday night, the cryptocurrency market was trading negatively. Losses were recorded for well-known cryptocurrencies like Bitcoin (BTC), Solana (SOL), and Dogecoin (DOGE). However, the price of Ethereum (ETH) was rising.
The market capitalization of cryptocurrencies decreased by around 0.7% to $851.72 billion, but their trading volume increased by 2.51% to $38.70 billion.
BTC dropped 0.9% to $17,243.39. BTC's price, though, saw a strong upward impetus around 2:00 pm that propelled it from a low of $17,171 to a high of $17,274. BTC’s trading volume was up by a marginal difference. BTC’s trading volume was up by 4.96 per cent at $15,825,458,651.
The price of Ethereum (ETH) increased 0.51 percent to $1,326.21 over the previous day, as of Tuesday night. For the majority of the day, ETH was trading up;
Dogecoin fell 2.0 per cent at $0.07608. Its 24-hour trading volume was up by 19.66 per cent at $710,667,996. Shiba Inu was up by 4.00 per cent to $0.000009254.