Coinbase to cut workforce by about 950 employees in further restructuring

In a regulatory filing, Coinbase reported that on January 10, the company announced a further restructuring plan to manage its operating expenses in response to the ongoing market conditions impacting the cryptoeconomy, as well as ongoing business prioritization efforts. The plan involves a reduction of the company’s workforce by approximately 950 employees. The company expects execution of the plan to be substantially complete by the second quarter of 2023. In connection with these actions, the company estimates that it will incur approximately $149M to $163M in total restructuring expenses, consisting of approximately $58M to $68M in cash charges related to employee severance and other termination benefits. Of the aggregate charges that the company expects to incur in connection with the plan, the company expects that approximately $91M to $95M will be in stock-based compensation expenditures relating to the acceleration of the vesting of outstanding equity awards in accordance with the terms of such awards. The company expects to recognize substantially all of these charges in the first quarter of 2023. "The estimates of the charges and expenditures that the company expects to incur in connection with the plan, and the timing thereof, are subject to a number of assumptions, including local law and consultation requirements in various jurisdictions, and actual amounts may differ materially from estimates. The company may also incur charges and expenditures not currently contemplated due to unanticipated events that may occur in connection with the plan," the filing stated.