Coinbase, the world’s third-largest cryptocurrency exchange, announced on June 14 that it will lay off 18 percent of its employees, or approximately 1,100 jobs, as the crypto crisis worsens. Bitcoin is currently trading at around $21,900.
The layoffs come a day after Bitcoin fell as much as 14% after a major U.S. cryptocurrency lending company, Celsius Network, froze withdrawals and transfers, in the latest sign of the financial market downturn affecting the cryptosphere.
Coinbase said earlier this month that it would extend its hiring freeze for the foreseeable future and rescind a number of accepted offers.
“Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn….but first I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me,” Coinbase CEO Brian Armstrong’s blog read.
In a filing on Tuesday, the company stated that it expects to incur total restructuring expenses of $40 million to $45 million, the majority of which will be related to employee severance and other termination benefits.
At the beginning of this year, Coinbase announced plans to hire 2,000 people in product, engineering, and design by 2022. As part of its expansion, the company set a goal of hiring 1,000 people in India.