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.
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