Coinbase Hiring Halts for the ‘Foreseeable Future’ and Will Cancel Offers
Two weeks after announcing plans to slow down hiring, crypto exchange Coinbase now says the freeze will continue for “the foreseeable future.” The company will also draw accepted job offers.
Coinbase said it is notifying prospects of canceled offers via email on Thursday. The company also said it was extending its dismissal policy to such people and would help them find jobs and revise their CVs.
“After evaluating our business priorities, current headcount, and vacancies, we have decided to put hiring on hold for as long as this macro environment requires,” LJ Brock, Coinbase’s chief human resources officer, wrote in a statement. blog post Thursday. “The extended hiring pause will include replacements, except for roles that are necessary to meet the high standards we have set for safety and compliance, or to support other critical work.”
Coinbase Co-Founder and CEO Brian Armstrong speaks onstage during “Tales from the Crypto: What the Currency of the Future Means for You” at Vanity Fair’s 6th Annual New Establishment Summit at the Wallis Annenberg Center for the Performing Arts on October 23, 2019 in Beverly Hills, California.
Matt Winkelmeyer | Getty Images
Coinbase has lost more than 70% of its value this year as the cryptocurrency sell-off coupled with economic turmoil has led to lower user numbers and lower revenue. The pain is being felt across much of the tech sector, with Uber and Facebook parent company Meta taking similar action, and Robinhood cutting its workforce by around 9%.
Prior to the 2022 downturn, Coinbase was among the top performers in the tech industry. The company tripled the size of its workforce last year to 3,730 employees. Following its Nasdaq debut in April 2021, Coinbase reported a 12-fold increase in second-quarter sales to $2.28 billion, while profits soared 4,900% to $1.6 billion.
But the tech companies with the highest growth rates last year have been the hardest hit this year, as investors turn to assets deemed safer in a world of rising interest rates and rising inflation. arrow. With bitcoin down more than a third this year and ethereum down 50%, fewer people are flocking to Coinbase to open accounts and transact.
Coinbase said last month that revenue in the last quarter fell 27% from a year earlier, while total trading volume fell from $547 billion in the fourth quarter to $309 billion over the past few months. first three months of 2022.
“We always knew crypto would be volatile, but this volatility alongside larger economic factors could test the business, and us personally, in new ways,” Brock wrote in Thursday’s post. “If we are flexible and resilient and stay focused on the long term, Coinbase will come out stronger on the other side.”
LOOK: ‘Halftime Report’ investment committee weighs in on fintech