In the wake of the cryptocurrency market crash, said this week they joined a number of tech companies its recruitment plans for this year. More details have emerged about Coinbase’s efforts to cut costs after obtain emails that have been sent to employees.
The company is said to have frozen hiring for two weeks (though it will honor offers already submitted) and halted new projects. It is also said to be trying to reduce the amount it spends on hosting services.
Along with not hiring as many people as previously expected for this year, Coinbase is looking to minimize employee attrition. According to reports, the company is giving employees more stock. Shares of Coinbase have fallen more than 75% in the past six months.
Coinbase is said to have paused some projects, such as a business banking initiative, while focusing on increasing revenue from its core products, including retail and institutional trading. Supposedly there are plans to offer retail customers more cryptocurrencies and expand outside the United States.
When asked for comment, a Coinbase spokesperson directed Engadget to a tweet thread from product manager Surojit Chatterjee. While the company is innovating with a focus on “high-impact products” and trying to “improve efficiency by looking to improve developer productivity,” Chatterjee noted that Coinbase has no plans to stop investing in strategic and risky projects. “We believe a bear market is a great time to build in the long term,” Chatterjee writes.
The company in its first-quarter earnings report last week, at $1.16 billion, net sales were down 27% year-over-year and by more than half from the previous quarter. Trading volume also decreased. In the midst of heavy hiring (which is said to have attracted more than 1,200 new employees this year), operating expenses jumped 9% quarter-over-quarter to $1.7 billion. Coinbase posted a net loss of $430 million in Q1. All of that was before the crypto market .
Stablecoin TerraUSD (supposedly pegged to the value of US dollars) and sister token Luna effectively collapsible, causing a ripple effect on other cryptocurrency prices. Although it has recovered a bit since then, the bitcoin price also fell below $26,000 for the first time in 16 months last week. in the middle of a sell-off saw over $200 billion wiped off the crypto market in a single day.
Coinbase’s shift in hiring strategy reflects a broader trend among prominent tech companies. and is one of the big business and slow down the recruitment plan. Meanwhile, Netflix about 150 employees in the US this week and have canceled several animation projects. The company’s stock plummeted after the first quarterly drop in subscribers last month.
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