Coinbase the third-largest crypto exchange in the world announced on June 14 that it will be cutting its workforce by 18% as part of plans to restructure the company. The crypto giant has about 5,000 full-time employees.

The CEO of Coinbase Brian Armstrong said the decision to fire the workers was necessary due to an expected recession and coming “crypto winter”. Roughly 1,100 workers were locked out of their Coinbase work accounts after which they received emails informing them of the termination due to the “crypto market crash” via their personal accounts.

Armstrong also admitted that the company experienced a growth that is not sustainable and hired too many people during the bull market.

The company expects to incur restructuring expenses amounting to about $40 million to $45 million from both employee severance and other termination benefits.

Chief Operating Officer Emilie Choi said it was difficult to decide the workforce reduction but it was the only action that could be taken at the time.

Coinbase has now joined Gemini, BlockFi, and other companies in laying off a large number of its employees.

The shares of the company have now plunged almost 7% on the news. They are now moving towards another record low of $48, plunging by a staggering 79% since the start of the year.

Featured image source: CryptoSlate