Coinbase’s momentum from its 2023 resurgence has carried over into the start of 2024. Over the past month, its stock price has experienced a 24% increase and the company recently reported a return to profitability in its annual financial results. The 10-K form provided some insight into the areas most impacted by Coinbase’s layoffs last January and the substantial compensation packages being offered to employees.
Two out of the three primary divisions—’technology and development’ and ‘general and administrative’—experienced significant reductions in employee numbers compared to 2022, with headcount decreasing by 24% and 17% respectively. Additionally, personnel costs within the technology division dropped by 43%, suggesting that higher-paid employees have left the company.
However, the ‘sales and marketing’ division appears to be an exception, as no significant changes were noted in personnel expenses for this area according to the 10Q.
Notably, Coinbase is compensating those who remain with generous packages. On average, each of its 3,416 employees received 424k in compensation, with253k being attributable to stock.
