{"id":169379,"date":"2023-01-10T17:27:42","date_gmt":"2023-01-10T17:27:42","guid":{"rendered":"https:\/\/precoinnews.com\/?p=169379"},"modified":"2023-01-10T17:27:42","modified_gmt":"2023-01-10T17:27:42","slug":"coinbase-investors-cheer-6-stock-surge-following-950-job-cut-announcement","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/coinbase-investors-cheer-6-stock-surge-following-950-job-cut-announcement\/","title":{"rendered":"Coinbase Investors Cheer 6% Stock Surge Following 950 Job Cut Announcement"},"content":{"rendered":"<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2023\/01\/Coinbase-1-770x434.png\"><img alt='' src='https:\/\/secure.gravatar.com\/avatar\/f5731f8e418e3e4e7918a1fdd29b4a2b?s=50&#038;d=retro&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/f5731f8e418e3e4e7918a1fdd29b4a2b?s=100&#038;d=retro&#038;r=g 2x' class='avatar avatar-50 photo' height='50' width='50' \/><\/p>\n<ul>\n<li>Coinbase announced plans to cut around 950 jobs.<\/li>\n<li>The decision to restructure is due to &#8220;ongoing market conditions impacting the crypto economy&#8221;<\/li>\n<li>This downsizing follows a similar round of job cuts made last year, when the crypto market was in a bear phase<\/li>\n<li>In addition to job cuts, Coinbase will also be discontinuing several projects with a &#8220;lower probability of success&#8221;<\/li>\n<li>According to CoinDesk, nearly 27,000 jobs have been lost across the crypto industry since April 2020.<\/li>\n<li>Shares of Coinbase saw a 5.5% increase in value after the company announced the job cuts.<\/li>\n<\/ul>\n<p>Coinbase announced that it will be downsizing its workforce by around 20% or 950 employees, as part of a restructuring effort set to be completed by the end of Q2 2023<\/p>\n<p>According to the company, the decision to restructure is a response to &#8220;ongoing market conditions impacting the crypto economy,&#8221; as stated in a filing with the U.S. Securities and Exchange Commission. <\/p>\n<p>&#8220;While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount,\u201d Armstrong said on a memo.<\/p>\n<p>\u201cThe FTX collapse and the resulting contagion has created a black eye for the industry,\u201d he said, adding there\u2019s likely more \u201cshoes to drop.\u201d in an interview to CNBC.<\/p>\n<p>\u201cWe may not have seen the last of it \u2014 there will be increased scrutiny on various companies in the space to make sure that they\u2019re following the rule&#8221;<\/p>\n<p> \u201cLong term that\u2019s a good thing. But short term, there\u2019s still a lot of market fear.\u201d <\/p>\n<p>The company anticipates that the restructuring process will cost between $149 million and $163 million, including cash charges of $58 million-$68 million related to employee severance. <\/p>\n<p>This downsizing follows a similar round of job cuts made last year when the crypto market was in a bear phase. CEO Brian Armstrong explained that the company had grown too quickly during the bull market, leading to the need to reduce expenses in order to increase the company&#8217;s chances of success in any market scenario. <\/p>\n<p>&#8220;One of the crazy parts about our industry is that in any given year we might be growing 300-500% or -50%. It makes it incredibly challenging to plan and culturally to absorb so many people during up periods.\u201d &#8211; CEO Armstrong previously stated on his Official Twitter Account.<\/p>\n<p>In addition to job cuts, Coinbase will also be discontinuing several projects with a &#8220;lower probability of success.&#8221; <\/p>\n<p>According to CoinDesk, nearly 27,000 jobs have been lost across the crypto industry since April 2020.<\/p>\n<p>The cryptocurrency market has been significantly impacted in recent months due to the fall of one of the industry&#8217;s major players, FTX. The incident has led to increased pressure and scrutiny on the sector, with some individuals, such as FTX founder Sam Bankman-Fried, being referred to as &#8220;unscrupulous actors&#8221; in the industry.<\/p>\n<h2><strong>Coinbase Shares Increased 6% After the Announcement.<\/strong><\/h2>\n<p>Shares of Coinbase saw a 6% increase in value after the company announced the job cuts.<\/p>\n<p>While the move will result in a significant reduction in staff, it is expected to also bring cost savings for the company. Investors appear to be taking the news positively, with the stock seeing a significant boost in value following the announcement. <\/p>\n<p>It should be noted that this kind of downsizing is not uncommon in crypto, where volatility is high, and the industry is constantly evolving. A few crypto companies have already announced layoffs, such as Crypto.Com, Gemini, Celsius, and others.<\/p>\n<p>Source: <a href=\"https:\/\/en.ethereumworldnews.com\/coinbase-investors-cheer-6-stock-surge-following-950-job-cut-announcement\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase announced plans to cut around 950<\/p>\n","protected":false},"author":3,"featured_media":169378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coinbase Investors Cheer 6% Stock Surge Following 950 Job Cut Announcement - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/altcoins\/coinbase-investors-cheer-6-stock-surge-following-950-job-cut-announcement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coinbase Investors Cheer 6% Stock Surge Following 950 Job Cut Announcement - 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