Crypto exchange Coinbase (COIN) said it’s planning to reduce headcount by around 950 employees as part of a restructuring that it expects to be complete by the end of the second quarter.

• This figure would amount to around 20% of Coinbase's workforce, which sits at about 4,700 according to the company's website.
• In a U.S. Securities and Exchange Commission filing on Tuesday, Coinbase said it is responding to "ongoing market conditions impacting the crypto economy."
• The company expects the restructuring to cost $149 million to $163 million, including $58 million to $68 million in cash charges related to employee severance.
• Coinbase began shedding jobs in June when crypto's bear market started to take hold. CEO Brian Armstrong said at the time that the company had "grown too quickly" during the crypto bull market, expanding to more than 5,000 employees from 1,250 at the start of 2021. The firm began by cutting 1,100 jobs, equivalent to 18% of its workforce at the time, followed by another 60 in November as the crypto winter grew even colder with the collapse of rival exchange FTX.
• Analysts on Wall Street reacted positively to Coinbase's job cuts announcement on Tuesday. “We are encouraged by this morning's news, as it shows the company is taking financial discipline seriously in a very challenging crypto/macro environment,” analysts from Barclay’s wrote, while acknowledging that it could also be a sign that the company is preparing for a tough year ahead.

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