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 Furthermore, it rescinded a couple of outstanding offers for people that have not started yet.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.
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