On the same day that rival crypto exchange Gemini confirmed layoffs, popular US cryptocurrency exchange Coinbase announced today that it will continue its hiring freeze amid a tumultuous recent market for both cryptocurrency and tech stocks.
Withdrawal of vacancies
In addition, the company will withdraw some job openings for employees who had accepted positions but had not yet started work.
Coinbase first announced plans to delay hiring in May. However, today’s blog post from LJ Brock, Coinbase’s chief people officer, confirms that the company will take a tougher turn.
As these discussions have evolved, it has become clear that we need to take stricter measures to curb the growth of our workforce. By adapting quickly and acting now, we can successfully navigate this macro environment and come out even stronger. In this way we can enable further healthy growth and innovation.
According to Brock, the freeze will not only affect new, unfilled positions. The filling of existing empty positions within the company is also affected.
There is an exception for roles required to meet the high standards we set for security and compliance. Or to support other mission-critical work.
Furthermore, Coinbase will withdraw some accepted offers for incoming employees that have yet to start.
Compensation severance pay
It’s not a decision we take lightly. Rather, Coinbase needs to see it as a necessity, to ensure we only grow in the highest priority areas.
The company said there will be limited exceptions and all affected people will be notified today.
Brock added that the move “is not a reflection on the very talented people we made job offers to.” The company will offer severance pay to those with withdrawn offers and help them find employment elsewhere in the industry.
The announcement comes less than a month after Brock promoted that Coinbase was hiring.
In May, Coinbase posted a $430 million loss for the first quarter of 2022. Previously, it had missed analysts’ forecasts of both profit and revenue for the quarter. Coinbase’s stock price has fallen more than 40% in the past month alone at a current price of less than $74 a share. brock wrote:
We have always known that crypto would be volatile. But that volatility alongside larger economic factors could test the company, and us personally, in new ways. If we are flexible and resilient, and stay focused on the long term, Coinbase will come out stronger on the other side.
Gemini announced this week that it will lay off 10% of its workforce to prepare for a coming “crypto winter.” At the end of April, crypto and stock trading app Robinhood laid off 9% of its staff as growth slowed. Crypto markets have seen extreme volatility in recent weeks. The price of top crypto Bitcoin has fallen by 21% in the past 30 days.