Chinese blockchain journalist and insider Colin Wu noticed that Coinbase's president and COO Emilie Choi posted an update on her platform's hiring policy.
Coinbase slows hiring to "reassess headcount needs"
Today, May 17, 2022, Mrs. Choi decided to publish the letter that had been previously shared with Coinbase's employees. It covers the major shift in hiring policy for Coinbase amid the ongoing market downturn.
Coinbase: Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals. Coinbase lost $420 million in the first quarter. Shares are down 75% year-to-date. https://t.co/bLbxg6qK58
— Wu Blockchain (@WuBlockchain) May 17, 2022AI Will Kill Gold, But Bitcoin Comes out Stronger, Predicts Nick SzaboWhales Offload XRP at Dizzying PaceCrypto Market Prediction: XRP to Enter Freefall, Critical Support Lost? Bitcoin (BTC) Hits $120,000 Top, Shiba Inu (SHIB) Bullish Reversal Starts HereBrandt Identifies XRP as Top Short Candidate Amid Price Slump
According to the document, the company decided to slow its hiring activity and reassess its headcount needs. Since headcount growth is a sensitive metric for Coinbase's business development, this announcement is a crucial one for each scenario of Coinbase's progress.
At the same time, Mrs. Choi added that the mentioned changes "are not expected to have any material impact" on the expense outlook for the year 2022.
Before the downturn started, the company planned to triple in size. In 2021, its net number of employees was over 3,700.
This statement might sound alarming, but Mrs. Choi highlighted that Coinbase is "in strong positions" and underwent several market downturns before.
СOIN price finds support at $60, being down 82% from ATH
On May 14, 2022, Coinbase turned 10; it is one of the oldest and most popular exchanges for institutional and retail users. As covered by U.Today previously, Coinbase made headlines with its controversial disclosure about allegedly seizing users' funds.
In Q1, 2022, the exchange posted a whopping $430 million net losses; its NASDAQ-listed COIN shares plummeted to an all-time low at $45.
By printing time, the token struggles to stay above $60. The all-time high of COIN price was registered in mid-November, 2021, over $357.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team