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Crypto exchange Coinbase Global Inc cut over 60 jobs in its recruiting and institutional onboarding teams, a spokesperson said on Thursday, at a time when pummeled digital coins risk another contagion in the sector and bigger rival FTX inches closer to a collapse.
The job cuts, the second time this year, follow a week after "crypto market headwinds" contributed to Coinbase's net loss of $544.6 million for the three months ended Sept. 30, compared to a profit of $406.1 million a year ago.
The job cuts will help operate as efficiently as possible," the spokesperson said.
In June, Coinbase cut 1,100 jobs, or 18% of its workforce, weeks after it said it would extend a hiring freeze and rescind a number of accepted offers.
Cryptocurrencies languished this year as higher interest rates and exacerbating worries of an economic downturn cratered prices that eliminated key players such as Voyager Digital, Three Arrows Capital and Celsius Network.
But the bigger blow to digital assets came since FTX showed early cracks. The larger crypto exchange, which had developed a penchant for bailing out troubled crypto firms, is exploring options since a liquidity crunch came to light and now faces scrutiny from U.S. regulators over its handling of customer funds, as well as its crypto-lending activities.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shailesh Kuber)