Crypto exchange Coinbase announced new staff cuts

The American cryptocurrency trading platform Coinbase has announced a new large-scale wave of layoffs, citing an unfavorable situation in both the cryptocurrency and traditional markets.. The company will cut its staff by another 950 employees, which will cost it, including severance pay, approximately $163 million.. At the same time, the company expects layoffs to end by the second quarter of 2023. The last layoffs in the company took place in early November, when the exchange laid off 60 people from the personnel department and the department of institutional adaptation. Then, in the fall, the crypto exchange froze the process of hiring new employees.. Despite these steps, crypto exchange earnings continued to fall. As of September 2022, about 4,700 people worked at Coinbase, therefore, new layoffs will reduce the staff of the exchange by 20%.. The company believes that this move will reduce operating expenses by 25% for the first quarter of 2023.. Also, Coinbase expects that losses will not exceed $500 million per year. According to the head of the company, Brian Armstrong, it became clear to the management of Coinbase that the company needed to cut costs in order to prepare for negative market events, and it was impossible to do this without cutting staff.. The company will also close several of its least promising projects. Since June, the total number of laid-off Coinbase employees has reached more than 2,000. During the bull market, the crypto exchange quickly hired staff, increasing its staff from 1,250 to 5,000 employees. The company previously agreed to pay $100 million to settle claims from the New York State Department of Financial Services (NYDFS), which accused the crypto exchange of violating AML rules from 2020 to 2021.