Coinbase Cuts Costs Yet Again as Crypto Winter Drags On. Should Investors Sell Now?
On Jan. 10, Coinbase Global (NASDAQ: COIN) co-founder and CEO Brian Armstrong announced that the company was aggressively cutting operating expenses, another sign of the ongoing slowdown in the cryptocurrency space. As a part of this belt-tightening, the company is letting go of 950 employees - about 20% of its workforce.
Coinbase's latest cuts underscore and are a product of the cryptocurrency's ongoing challenges. Unfortunately, there's no real clarity about when or if things will improve in the industry writ large. But what do these cuts mean for Coinbase's long-term prospects? Are these layoffs a sign of the end times or a smart readjustment that will help the company withstand the cold crypto winter?
In 2021, Coinbase's full-year revenue jumped to $7.84 billion -- up from just $1.27 billion in the previous year. That's over 500% year-over-year growth: A mind-numbing amount, especially at such a scale. Moreover, that growth was eye-poppingly profitable at a 46% net profit margin.
Source Fool.com
