Coinbase isn’t just freezing new hires as it grapples with a rough cryptocurrency market. Protocolsays Coinbase is now rescinding some of its already-accepted job offers. The company determined that it needed to take “more stringent measures” to slow its growth and limit expansion to the most important segments. This will improve the company’s recovery from the tumultuous crypto market, Chief People Officer LJ Brock said.
Brock added that the firm would extend its hiring freeze for as long as necessary, and that the pause included “backfills” (that is, replacements) for all but the most essential roles. Coinbase is creating a talent hub to help place affected candidates and workers, and has promised to use its severance policy to soften the blow.
The company has reeled from a mix of volatile crypto prices and optimistic hiring. In its first quarter, Coinbase saw its revenue fall 27 percent year-to-year, and by half from the previous three months. Combine that with higher expenses from a 2021 hiring spree and Coinbase was faced with a $430 million loss even before a crypto price plunge earlier in May. Its stock value has also tumbled by 75 percent in the past six months.
This isn’t the only well-known technology company slowing down. Meta, Uber and others are also limiting hires and trimming costs amid market uncertainty. However, Coinbase’s moves are tied to the very nature of the tech it depends on — its business might only stabilize when crypto does.