Two weeks ago, the Nasdaq-listed crypto exchange Coinbase paused hiring in an effort to slow its headcount growth amid the dawning fintech & crypto crisis. In one of its latest blog posts on 2 June 2022, Coinbase said that it will extend the hiring pause for the foreseeable future and will rescind a number of outstanding offers for people who have not started yet. The move followed a worse-than-expected first-quarter report and is in line with a wider wave of layoffs and hiring freezes in the cryptocurrency space.
In their Q1 earnings call, the Coinbase management discussed that headcount and a variety of other expenses are the key ways to manage its costs. Coinbase’s Chief People Officer L.J. Brock (LinkedIn) wrote that this isn’t a decision the company made lightly but sees it as necessary “to ensure we are only growing in the highest-priority areas.” To help offset the ramifications of its sudden change, Coinbase is establishing a support system for applications. Brock wrote:“To further support impacted individuals, we are establishing a talent hub to allow them to opt-in to receive additional support services including job placement support, resume review, interview coaching and access to our strong industry connections.”Brock defended the decision as a prudent one “given market conditions” and added that Coinbase will “continue to evaluate all of our options.”