Coinbase to Rescind Employment Offers, Extend Hiring Freeze
(Bloomberg) -- Coinbase Global Inc. said it will extend a hiring freeze for both new and existing positions for the “foreseeable future” and rescind a number of accepted offers.
The largest US cryptocurrency exchange cited market conditions and ongoing business “prioritization efforts” for the decision in a blog post Thursday. Bitcoin has tumbled more than 55% from its record high in November,
while other so-called altcoins have fallen even more as investors reevaluate the sector while central banks pull back on Covid-era stimulus.
Some Wall Street analysts have warned that Coinbase’s costs are too high. The company has ballooned to 4,948 full-time employees, from about 1,700 just a year ago. Hiring helped drive the company’s total operating costs
to $1.7 billion in the first quarter, up 9% from the previous three months.
Read more: Coinbase Melts Down Even as Wall Street Is Bullish on Prospects
In a memo to employees on May 17, Coinbase’s chief product officer, Surojit Chatterjee, said the company will be increasing its focus “on critical revenue-generating products” by doubling down on core products while seeking
improvements in developer productivity.
The decision was announced the same day as Gemini Trust Co., the crypto business run by billionaire twins Cameron and Tyler Winklevoss, told staff of plans to slash the company’s workforce by 10%. Rain Financial Inc. --
one of the Middle East’s largest crypto exchanges, with big backers from Silicon Valley -- also made cuts, laying off dozens of employees, according to people with direct knowledge of the matter.
Coinbase has gone from one of the stock market’s most hotly anticipated debuts to one of its most spectacular crashes in a little more than a year. The firm’s market value has shrunk by about $50 billion since the end of its
first day of trading last April.
Read more: Coinbase’s $51 Billion Nosedive Isn’t Only About Crypto Winter
Shares of Coinbase fell to an all-time low in May, and even after recovering somewhat are still down about 80% from their debut. The stock rose 7.6% to $73.82 on Thursday, and was little changed in post-market trading.
