Coinbase is extending its hiring freeze indefinitely
Coinbase has extended its hiring freeze from two weeks to as long as the "macro-environment requires"
By Shashank Bhardwaj
Popular crypto exchange Coinbase announced in a blog post on Thursday that they will be extending their hiring pause for the foreseeable future and revoke several “outstanding offers for people who haven’t started yet.” However, the company also implied that they would notify the incoming hires of the rescinded job offers via mail and receive a severance compensation.
The crypto exchange froze hiring for two weeks over fears of rising interest rates in the crypto market. It also stated that it will pause hiring “for as long as this macro-environment requires.”
Following the news, the shares of Coinbase showed no considerable price movement in after-hours trading. Coinbase’s stock has been down more than 75 percent since its debut in the market last year via a direct listing.
The company reported a 35 percent slump in total revenue last month to $1.17 billion for the three months, which ended on 31st March. The lacklustre performance proved all analyst expectations wrong and weighed on the investor sentiment.
Coinbase’s chief people officer said in the blog post that they always knew crypto would be volatile, but the volatility combined with larger economic factors might test the company and them personally as well, in new ways. The company also stated that as the discussions have evolved, it is evident that they need to take stringent measures to slow their headcount growth.
Coinbase said, “As these discussions have evolved, it’s become evident that we need to take more stringent measures to slow our headcount growth. We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways.”
The crypto market has faced severe losses this year. With Bitcoin down by 35 percent and Ethereum losing 50 percent, in 2022. Coinbase shares have lost more than 70 percent of their value year-to-date.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash