With the cryptocurrency market still volatile, Coinbase ( NASDAQ: COIN ) is reducing its headcount again, letting go of about 950 people , or 25% of its staff, the company said Tuesday. With the cryptocurrency market downturn, that started over a year ago, and extended with the failure of several firms, including crypto exchange FTX, Coinbase's ( COIN ) results have been dented. Coinbase stock has dropped 1.5% in premarket trading. The company still expects 2022 adjusted EBITDA within the -$500M range that it provided on Nov. 3 . It also expects to report 2022 average annual monthly transacting users, average transaction revenue per user, and subscription and services revenue to be consistent with its full-year 2022 outlook. Ultimately, CEO Brian Armstrong expects Coinbase ( COIN ) will emerge from the cryptocurrency turmoil stronger as FTX, a major competitor, failed, and regulations become clearer. "But it will take time for these changes to come to fruition and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge," he said in a blog post . As part of its headcount reduction, Coinbase ( COIN ) will be shutting several projects where it has "a lower probability of success," he said. In connection with the actions, the company expects to incur ~$149M-$163M in restructuring expenses, consisting of ~$58M-$68M in cash charges related to employee severance and termination benefits. Some $91M-$95M of the total charges will be in stock-based compensation expenditures for the accelerated vesting of outstanding equity awards. Substantially all of the charges are expected to be recognized in Q1 2023. The restructuring plan will reduce some Q1 operating expenses — including sales and marketing, technology, and development, and general and administrative — by about 25%, it said. On Monday, Coinbase ( COIN ) stock jumped as Jefferies initiated coverage of the crypto market with a Hold rating on expectations that the crypto exchange will weather FTX fallout.
