Coinbase to Downscale, Announces Hiring Freeze and Rescinds Accepted Offers

June 07, 2022, 10:45 AM AEST - 3 weeks ago

US-based cryptocurrency exchange Coinbase recently announced it would extend its hiring freeze “for the foreseeable future” as a response to current market conditions. Additionally, the company intends to rescind accepted offers from candidates who had taken employment positions but had yet to start in their roles.

Coinbase Responds to Crypto Market Conditions

As per a blog post written by chief people officer L.J. Brock, Coinbase is looking at implementing cost-cutting measures as a response to “current market conditions and ongoing business prioritisation efforts”.

Moreover, Brock said the exchange would have to rescind “a number of outstanding offers for people who have not started yet”.

This is not a decision we make lightly, but is necessary to ensure we are only growing in the highest-priority areas.

L.J. Brock, chief people officer, Coinbase

In February, Coinbase announced it was on a hiring spree for 6,000 new employees. Less than a month ago, Brock published a tweet saying the firm was actively hiring, though shortly after it was announced that Coinbase had halted the process.

It seems the company is now taking a more severe turn. Naturally, the decision has impacted a vast number of candidates who had been accepted for roles within the company – some of them had pinned their hopes on a position to stay in the US legally:

On May 26, Crypto News Australia reported that Coinbase had entered Fortune 500, a list ranking the 500 top US companies by revenue. However, the firm’s Q1 financial results for 2022 weren’t so encouraging as it suffered a US$430 million loss:

Exchanges Feeling Pain of a Bearish Market

It seems exchanges are feeling the pain of a bearish crypto market, and Coinbase has been one of the most affected firms. As Crypto News Australia reported last month, a lot of retail investors are leaving the crypto market.

Coinbase isn’t the only cryptocurrency exchange that seems compelled to downscale its headcount. A few days ago, Winklevoss-led Gemini announced it would part ways with 10 percent of its workforce due to market conditions.

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