Coinbase Pauses Hiring As Cryptocurrency Plunges

According to Engadget, Coinbase is said to have frozen recruitment for 2 weeks and halted new projects. The company is also trying to reduce spending on hosting services. This comes as Coinbase shares have dropped more than 75% in the past 6 months.

Cryptocurrency Value Continuously Drops Causing Companies Like Coinbase Difficulty Reuters

Coinbase is said to have paused some projects, such as a banking initiative business, while focusing on growing revenue from core products, including retail and institutional deals. The company plans to offer retail customers more cryptocurrencies and expand operations outside of the US.

Coinbase Product Manager Surojit Chatterjee said the company is innovating with a focus on high-impact products and trying to improve efficiency by looking to improve developer productivity. He also noted that Coinbase has no plans to stop investing in strategic and risky projects.

It is known that in the first quarter of 2022 earnings report last week, Coinbase reported net sales of $ 1.16 billion, down 27% year-over-year and more than half compared to the previous quarter. Trading volume also decreased. Amid heavy hiring (more than 1,200 new employees this year), Coinbase’s operating expenses increased 9% quarter-over-quarter to $1.7 billion. Coinbase posted a net loss of $430 million in Q1.

Coinbase’s shift in hiring strategy reflects a broader trend among prominent tech companies. Meta and Uber are enterprise major cuts in costs and slows down the recruitment plan. Meanwhile, Netflix laid off about 150 employees in the US this week and canceled several animation projects. Shares of Netflix fell sharply after the company reported its first quarterly drop in subscribers last month.