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.