Coinbase announced cost-cutting measures to deal with the ongoing bear market.
With crypto firmly stuck in a bear market
, companies are adjusting their HR policies.
Coinbase released an update
on its May plans, in which the exchange announced a "hiring pause for both new and backfill roles for the foreseeable future." The pause will be "for as long as this macro environment requires" and includes backfills, "except for roles that are necessary to meet the high standards we set for security and compliance, or to support other mission-critical work." Furthermore, it rescinded a couple of outstanding offers for people that have not started yet.
The announcement comes with the usual phrasing of not taking such a decision lightly, although Coinbase maintains it is "the prudent one given the market conditions."
The update follows a May announcement that Coinbase would slow hiring to meet its EBITDA targets. However, a slowdown has now turned into a complete hiring freeze and is undoubtedly also a reaction to the company's poor Q1 results. Coinbase recorded a $430 million loss for the first quarter, significantly missing
its revenues and earnings targets.
The Coinbase stock currently trades around $73, well off its all-time high of $319 set in October 2021.
The announcement follows a similar move by fellow crypto exchange Gemini, which laid off 10% of its staff. As the crypto industry braces for the possibility of a long winter, it will likely not be the last cost-cutting measure of its kind.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.