The job cuts, the second time this year, follow a week after “crypto market headwinds” contributed to Coinbase’s net loss of $544.6 million for the three months ended Sept. 30, compared to a profit of $406.1 million a year ago.
“The job cuts will help operate as efficiently as possible,” the spokesperson said.
Coinbase cut 1,100 jobs, or 18% of its workforce, weeks after it said it would extend a hiring freeze and rescind a number of accepted offers.
Cryptocurrencies languished this year as higher interest rates and exacerbating worries of an economic downturn cratered prices that eliminated key players such as Voyager Digital, Three Arrows Capital and Celsius Network.
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But the bigger blow to digital assets came since FTX showed early cracks. The larger crypto exchange, which had developed a penchant for bailing out troubled crypto firms, is exploring options since a liquidity crunch came to light and now faces scrutiny from U.S. regulators over its handling of customer funds, as well as its crypto-lending activities.
The crypto market continued to be under stress after Binance backed out from purchasing out its arch-rival FTX trading, citing finances, investigation concerns.
Binance has scrapped its letter of
intent to buy rival crypto exchange FTX after due diligence. Furthermore, there are several reports that FTX mishandled customer funds.