Coinbase to Slow Hiring Amid the Plunge in Cryptocurrencies and Tech Stocks

Source: news.yahoo.com

Coinbase has become the latest tech firm to announce plans to slow down hiring.

On Tuesday, Coinbase told its staff that it will stop hiring and reviewing its staff. This means that the crypto company has reversed its plans to triple its workforce in 2022.

“Given current market conditions, we believe it’s appropriate to delay recruiting and review our personnel needs against our highest-priority business goals,” wrote Emilie Choi, Coinbase’s chief operations officer, in a blog post.

“Our financial strategy relies heavily on headcount expansion. Therefore, this is a critical measure to guarantee that we operate our business following the prepared scenarios,” she continued.

With the once well-performing tech stocks affected by the prevailing market crash, companies are reassessing their plans to assure investors that they can beat the storm. The Nasqd Composite has lost more than a quarter of its value since the beginning of the year. This can be attributed to the rising inflation fears among investors and the high-interest rates from the Federal Reserve.

Coinbase has been hit hard this year, with its shares dropping by 74% amid a huge slip in the price of Bitcoin and other cryptocurrencies. The ongoing crypto crash has seen the Bitcoin price hit an all-time low of below $26,000 and the collapse of Terra, a controversial stablecoin. Bitcoin price hit its all-time high of about $69,000 in September last year.

Source: www.investopedia.com

Other cryptocurrencies such as Ethereum have not been spared, with the Ethereum price falling below the $2,000 mark. The current Ethereum price is $1,770.06, according to CoinMarketCap.

On Tuesday of last week, the price of Coinbase shares rose by 7%.

Coinbase, a crypto market that generates most of its revenue from trading fees, reported that its revenue dropped by 27% in the first quarter of the year as usage of the platform declined. During a call with analysts, Coinbase stated that it is investing “pretty heavily” in compliance but gave hints of slowing down hiring as a way of cutting down costs during the ongoing cryptocurrency market crash.

“We understand that this is a complex moment and that market downturns can seem
frightening,” said Choi on Tuesday.

“But… we plan for all market eventualities, and we are now putting some of those strategies into action.”

She added: “We’re in a terrific situation – we have a robust balance sheet.” We’ve been through multiple market downturns previously, and each time we’ve come out stronger.”

This move makes Coinbase the latest tech company to cut down investment in hiring. Meta, Facebook’s parent company, and Uber have also taken similar measures, while Robinson had decided to reduce its workforce by about 9%.

In other crypto news, Coinbase has beaten all cryptocurrency market challenges to become the first cryptocurrency company to enter the Fortune 500 list of biggest US companies. The cryptocurrency exchange recorded a great success in 2021 which propelled it to position 437 in the Fortune list of the biggest U.S companies.

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