Coinbase Freezes Hiring And Rescinds Job Offers

June 5, 2022 6:57 pm

As the crypto market slump continues and is happening at the same time as a stock market decline, major crypto exchanges are taking actions to reduce financial costs.

Coinbase just announced in the past week that it will be continuing its hiring freeze and will even rescind job offers that it had given.

This decision was a lot more drastic than many investors had previously anticipated and had alarmed some analysts within the industry.

Coinbase was not the only exchange that took drastic measures recently as rival exchange Gemini had also confirmed layoffs.

The change was quite swift as Coinbase had advertised that they were planning to expand their staff only around a month ago.

DeCrypt.co reports:

Brock added that the move is “not a reflection on the highly talented people we had extended job offers to,” and that the firm will offer severance to those with rescinded offers as well as help them find jobs elsewhere in the industry.

The announcement comes less than a month after Brock had promoted the fact that Coinbase was hiring.

In May, Coinbase posted a $430 million loss for Q1 2022 after missing analysts’ predictions on both profit and revenue for the quarter.

Coinbase’s stock price is down more than 40% over the last month alone at a current price of under $74 per share.

“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.”

Similar actions have been taken throughout the crypto and equity markets as both Gemini and Robinhood are laying off a percentage of their staff.

Coinbase’s chief people officer comments that their reason for doing so is to respond to the macro environment with the anticipation of more volatility.

The company’s results has been a stark contrast to its growth that was experienced back in 2021 during the crypto bull run.

With that being said, many investors see this bear market as an opportunity to allow the strongest digital assets to grow and prosper.

In a sense, there are some comparisons to the dot com boom where those who have value will eventually end up extremely successful.

CNBC reports:

But the tech companies with the highest growth rates last year have been hit the hardest this year as investors rotate into assets deemed safer in a world of rising interest rates and soaring inflation.

With bitcoin down by more than one-third this year and ethereum off by 50%, fewer people are racing to Coinbase to open accounts and make transactions.

Coinbase said last month that revenue in the latest quarter fell 27% from a year earlier, while total trading volume declined from $547 billion in the fourth quarter to $309 billion in the first three months of 2022.

“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 in Thursday’s post.

“If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side.”

Despite all this, it is impressive to note that Ripple is still hiring despite the current market conditions.

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