Coinbase announced today that it will slow down its hiring process this year and re-evaluate its headcount as it battles the market downturn.
Emilie Choi, president and COO of Coinbase, said the company wants to focus on other business goals that it sees as “top priority.”
Coinbase will not triple its headcount
The current market volatility has affected everyone in the industry, and not even its most prominent players have remained immune from the chilling conditions. Coinbase, the largest cryptocurrency exchange in the US, was hit hard as markets turned red and will step back from its expansion plans.
Coinbase President and COO Emilie Choi said the company will reduce hiring in an employee update. Choi explained that the company decided to prioritize its resources.
In April, Coinbase announced plans to triple the size of the company and take on a larger share of the global market, most notably India. This was in line with the company’s plans from earlier in the year when they announced that they would be hiring more than 2,000 employees worldwide.
Brian Armstrong, the CEO of Coinbase, said that half of those employees will come from India, where the exchange planned to put down roots this spring.
However, regulatory uncertainty in the country, a significant loss in revenue last quarter and a broader market downturn forced the company to reassess its expansion strategy and slow its hiring efforts.
The company also said it will “reassess its workforce” but did not disclose further details on whether or not it will lay off employees.
“Headcount growth is a key input to our financial model, and this is an important action to ensure we run our business in the scenarios we plan for,” Choi said in the company’s update for employees.
Instead, the company will focus on fully integrating all recent hires and prioritizing its operations.
Choi noted that while market downturns can scare users and investors, the company already has plans for every market scenario, and this one is no exception.
“We plan for all market scenarios, and now we are starting to put some of those plans into action. We are in a strong position – we have a strong balance sheet and have been through several market downturns before, and have emerged stronger each time.”
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This post Coinbase to Reduce Hiring and Expansion Due to Market Downturn
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