Shares of Coinbase Global Inc. dove 6.0% into record-low territory in premarket trading Tuesday, after the cryptocurrency marketplace said it was laying off about 1,100 employees as part of restructuring plan. The company said the job cuts, which represents about 18% of the workforce, comes in response to “current market conditions and ongoing business prioritization efforts.” Coinbase expects the restructuring plan to be “substantially complete” in the second quarter of 2022. The company expects to record restructuring charges of $40 million to $45 million, with most of the charges booked in the second quarter. The job-cut announcement comes after Coinbase said last week that it will extend its hiring freeze and rescind some already accepted job offers. It also follows a recent plunge in cryptocurrencies. Bitcoin fell 2.9% toward an 18-month low in early trading Tuesday, after plummeting 22.7% on Monday. Coinbase’s stock has plummeted 79.4% year to date through Monday, while the S&P 500 has dropped 21.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.