Coinbase To Freeze All Hiring
Coinbase has announced today that it will be halting all open job positions due to the recent market conditions in both tech stocks and cryptocurrency markets. Additionally, the exchange will be revoking all accepted job positions for individuals who had not already started working.
This comes the same day as Gemini confirmed the layoff of about 10% of its workforce, due to similar reasoning as Coinbase.
Coinbase first mentioned shrinking the number of people it was hiring back in May, but today the company's chief people officer L.J. Brock, wrote a blog post validating many people's suspicion of further reaction to a slowing crypto market.
“As these discussions have evolved, it’s become evident that we need to take more stringent measures to slow our headcount growth,” Brock wrote. “Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation.”
According to the blog, not all positions in the company will be shut down from hiring with “roles that are necessary to meet the high standards we set for security and compliance or to support other mission-critical work.” such as customer service and programmers.
But the exchange will still pull some already accepted positions, if needed, for those new employees who had not already started who will all be informed today. Brock went on to say that this is “not a decision we make lightly,” but that Coinbase sees it as “necessary to ensure we are only growing in the highest-priority areas.”
Brock points out that this is not a reflection on the highly talented people we had extended job offers to,” and the firm will be compensating the jobs rescinded, going as far as to help those people find other jobs in the industry.
Speculation about Coinbase's health had been brewing since they reported a loss of $430 million for Q1 2022 back in May, missing most analysts’ predictions of their revenue and profit for the quarter. The firm's stock price has slumped significantly by over 40%, slashing the price of its stock to $74 a share, a stark flip from when it originally began trading and opened at a mighty $330.
“We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways,” Brock wrote today. “If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side.”
The crypto market has seen much turmoil over the past 2 months with Gemini laying off 10% of its staff, getting ready for the so-called “crypto winter” ahead. In April, Robinhood laid off 9% of its staff as growth slowed. These are cautious times for the industry with many not being around during the last crypto winter many do not know what to do.