Coinbase Freezes Hiring, Rescinds Existing Offers

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 Furthermore, it rescinded a couple of outstanding offers for people that have not started yet.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

Leave a Comment