Analysts on Wall Street reacted positively to a second round of job cuts announced by Coinbase (COIN) on Tuesday.

“We are encouraged by this morning's news, as it shows the company is taking financial discipline seriously in a very challenging crypto/macro environment,” analysts from Barclay’s wrote, while acknowledging that it could also be a sign that the company is preparing for a tough year ahead.

Coinbase said it will cut 950 jobs, about 20% of its current workforce, in a move to bring down the company’s operating expenses by roughly a quarter by the end of March. The U.S. exchange already laid off over 1,000 employees last June.

Coinbase’s stock surged almost 9% to $41.62 on the job cut news as multiple Wall Street banks reiterated their positive long-term outlook on the company.

Investment giant Oppenheimer held onto its outperform rating and wrote in a report on Monday that Coinbase has the potential to be “one of the few long-term survivors” in the crypto space, citing “many positives” that have yet to be priced into the stock including diversification, market share gains and a strong balance sheet, as well as short-squeeze potential.