Coinbase Global Shares Surge 10% on Workforce Cut Announcement

Coinbase Global, Inc. (NASDAQ:COIN) shares gained more than 10% intra-day today after the company revealed a new restructuring plan to control its operating costs given the current market conditions and ongoing efforts to prioritize its business. This plan involves laying off around 950 employees and is expected to be substantially complete by Q2/23.

According to the analyst at Wedbush, this announcement, aimed at further preserving cash is critical for the company, as overall crypto-related adoption and trading volumes continue to be impacted by a mix of confidence "killing" controversies (FTX) as well as concerns over pending legislation.

The analysts believe the company is well positioned to likely survive and succeed in a tough neighborhood, where the relevance of most of its peers/competitors seems to be diminishing.