Coinbase stock fluctuates at the open following layoff announcement
Crypto exchange Coinbase (COIN) was down as much as 5% on Tuesday following the announcement that 18% of staff would be laid off.
CEO Brian Armstrong revealed in a blog post on Tuesday that COIN would be laying off 18%, or about 1100 staff, with immediate effect.
Shares in the company were trading at $49.34 at the time of writing, after closing at $51.01 on Monday. Early trade in the exchange stock was highly volatile, swinging above and below $50 throughout the morning.
COIN closed down 11.41% at the top of the week following a choppy day of trading in the US that has spurred bear market fears.
The exchange estimates that it will incur between $40 and $45 million in total restructuring expenses related to employee severance and other termination benefits.
The news followed Coinbase’s announcement on June 2 that it would be freezing its hiring plans and rescinding some of the offers it extended.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Adam Morgan McCarthy
