Coinbase, Scale AI make deep staff cuts - San Francisco Business Times

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Two more San Francisco tech firms — one publicly traded and the other a unicorn — each slashed 20% of their workforce on Tuesday bayarea layoffs

The company estimates that it will incur approximately $149 million to $163 million in total restructuring expenses, consisting of about $58 million to $68 million in cash charges related to employee severance, and roughly $91 million to $95 million in stock-based compensation expenditures relating to the vesting of outstanding equity awards, according to the filing.

The news also comes on the heels of Coinbase's $100 million agreement with the New York State Department of Financial Service, which consists of paying a $50 million fine after financial regulators there found that it violated anti-money-laundering laws by letting customers open accounts without sufficient background checks, as well as investing another $50 million in the state's compliance function over the next two years.

Also cutting 20% of its staff this week was San Francisco artificial intelligence data-management startup Scale AI — last valued at $7 billion in 2021 — which confirmed the layoffs in a blog post. Prior to the layoffs it employed about 700 people, which would mean about 140 layoffs.and Lucy Guo, Scale AI was a member of Y Combinator's summer 2016 cohort.

 

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