Coinbase has extended its hiring freeze for the “foreseeable future,” two weeks after announcing it would do so.
Coinbase has lost more than 70% of its value this year due to economic upheaval and a drop in cryptocurrencies, which has resulted in a drop in users.
“We have decided to pause hiring for as long as this macro environment requires,” the company said.
Coinbase, which announced plans to slow hiring two weeks ago, now says the freeze will last for the “foreseeable future.” Some accepted job offers will also be withdrawn by the company.
On Thursday, Coinbase said it will notify prospects of the retracted offers through email. The company also stated that it will extend its severance policy to those workers and assist them with job placement and resume review.
“After assessing our business priorities, current headcount, and open roles, we have decided to pause hiring for as long as this macro environment requires,” L.J. Brock, Coinbase’s chief people officer, wrote in a blog post on Thursday. “The extended hiring pause will include backfills, except for roles that are necessary to meet the high standards we set for security and compliance, or to support other mission-critical work.”
Coinbase has lost more than 70% of its value this year as a result of the cryptocurrency selloff, which has resulted in a drop in users and income. Much of the IT sector is feeling the pinch, with Uber and Facebook parent Meta adopting similar actions, and Robinhood reducing personnel by approximately 9%.
Coinbase had been among the highest flyers in the tech industry before to the 2022 crash. Last year, the company increased its workforce to 3,730 employees. Coinbase announced a 12-fold surge in second-quarter sales to $2.28 billion following its Nasdaq launch in April 2021, while profit increased 4,900% to $1.6 billion.
However, the tech businesses with the strongest growth rates last year have been hammered the hardest this year as investors seek safer investments in a world of increasing interest rates and skyrocketing prices. With bitcoin down more than a third this year and ethereum down 50%, fewer individuals are flocking to Coinbase to register accounts and conduct transactions.
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