Coinbase to cut nearly a fifth of its workforce

Coinbase Global in Wilmington, Del., will cut nearly a fifth of its employees. 

The crypto exchange said in a Tuesday regulatory filing that it will lay off about 1,100 employees by the end of this month. 

The cuts are part of a restructuring plan to manage operating expenses “in response to current market conditions and ongoing business prioritization efforts,” the filing said.

Coinbase said it expects to incur $40 million to $45 million in restructuring expenses in the second quarter tied to the cuts. 

The company said that laid off workers will get at least 3.5 months of severance, plus two weeks for each year of employment.

Coinbase said it is not updating the outlook it provided in a May 10 letter to shareholders.

Crypto markets have been in turmoil in recent weeks. The collapse of TerraUSA stablecoin erased billions of market gains, and the recent decision by Celsius to freeze withdrawals has caused more concern.