Coinbase to extend hiring pause, rescind some accepted job offers

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Coinbase will extend a hiring pause and rescind some job offers in response to "current market conditions and ongoing business prioritization efforts."

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COINCOINBASE GLOBAL INC.69.36+2.67+4.01%

The moves come roughly two weeks after the cryptocurrency exchange started slowing down hiring.

"It’s become evident that we need to take more stringent measures to slow our headcount growth," L.J. Brock, chief people officer at Coinbase, said in a blog post on Friday. "Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation."

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The hiring pause, which will last for "as long as this macro environment requires", will include backfills, except for roles that are necessary to meet its high security and compliance standards or to support other "mission-critical" work. 

Meanwhile, the job offers will be rescinded for incoming hires who have not started in their positions yet. Limited exceptions will apply and will be managed by the same criteria as backfills.

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

Coinbase will extend a hiring pause and rescind some job offers in response to “current market conditions and ongoing business prioritization efforts.”(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images) (Mateusz Slodkowski/SOPA Images/LightRocket / Getty Images)

Coinbase will give impacted individuals severance and establish a talent hub that will offer job placement support, resume review, interview coaching and access to industry connections. 

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Coinbase's update comes as Gemini exchange founders Cameron and Tyler Winklevoss have laid off 10% of their workforce and warned that the industry is entering a "crypto winter", described as a "contraction phase settling into a period of stasis."

"We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways," Brock emphasized. "If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side."

Coinbase ended the first quarter of 2022 with 4,948 full-time employees, up 33% from last quarter. 

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The company posted a quarterly net loss of $430 million as total transaction revenue fell from $547 billion to $309 billion on lower volume. Monthly transacting users fell to 9.2 million from 11.4 million in the previous quarter, driven by lower crypto asset price volatility and lower crypto asset prices overall. Subscription and services revenue came in at $152 million, representing 13% of total revenue. 

Looking ahead at the second quarter, the company expects total monthly transacting users and transaction volume to be lower and subscription and services revenue to be "similar to modestly lower" compared with the first quarter. 

Coinbase stock has fallen approximately 70% year to date as of the time of publication. 

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