Coinbase stock fluctuates at the open following layoff announcement

Quick Take

  • Coinbase traded down in a range of 2% to 5% following an announcement that they would be laying off 18% of their staff.
  • The share price briefly fell below $50 on Tuesday after the open before recovering slightly. 

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.

About Author

Adam Morgan is The Block's markets reporter. He has been based in London for the past year, initially freelancing and working for a start-up there before beginning a fellowship at Business Insider. He Tweets @AdamMcMarkets