Coinbase Global Inc (NASDAQ:COIN) shares are trading lower Tuesday after the company announced a restructuring plan.
The plan involves cutting the company’s workforce by approximately 1,100 employees, representing about 18% of Coinbase's workforce. Coinbase said it aims to manage its operating expenses in response to current market conditions and ongoing business prioritization efforts.
Coinbase expects the execution of its plan to be substantially complete in the second quarter.
In connection with these workforce reductions, Coinbase estimates it will incur approximately $40 to $45 million in total restructuring expenses.
Related Link: 'Plan For The Worst So We Can Operate The Business Through Any Environment,' Coinbase CEO Announces 18% Staff Reduction
JPMorgan analyst Kenneth Worthington downgraded Coinbase from Overweight to a Neutral rating and lowered the price target from $171 to $68.
COIN Price Action: Coinbase has a 52-week high of $368.90 and a 52-week low of $40.83.
The stock was down 4.17% at $49.83 at press time, according to data from Benzinga Pro.
Photo: courtesy of Coinbase.
