On June 14, 2022, Coinbase Global, Inc. (NASDAQ:COIN) announced a restructuring plan to manage its operating expenses in response to current market conditions and ongoing business prioritization efforts.

The Plan involves a reduction of the company’s workforce by approximately 1,100 employees, representing approximately 18% of the company’s global workforce as of June 10, 2022, following which the company expects to have approximately 5,000 total employees as of the end of its current fiscal quarter on June 30, 2022.

Coinbase expects execution of the plan to be substantially complete in the second quarter of 2022.

In connection with these actions, the company estimates that it will incur approximately $40 million to $45 million in total restructuring expenses, all of which are future cash-based expenditures and substantially all of which are related to employee severance and other termination benefits. The company expects to recognize substantially all of these charges in the second quarter of 2022.

Coinbase expects to recognize an immaterial reduction of stock-based compensation as it does not anticipate materially modifying the affected employees’ stock awards to accelerate the vesting of such awards or to otherwise modify such awards in a manner that would result in such charges.

As a result of the Plan, the company expects that the previously provided outlook for the company’s technology and development and general and administrative expenses for full year 2022 to be closer to the lower end of the range included in the Shareholder Letter.

Earlier in June, Coinbase Chief People Officer L.J Brock said the company was extending its hiring pause.