Coinbase, the third-largest crypto exchange by volume, has changed its tone on hiring amid a market downturn.
“As we approached this year, we had planned to triple the size of the company. Given current market conditions, we believe it is prudent to slow down hiring and re-evaluate our staffing needs against our highest priority business objectives,” wrote today Emilie Choi, President and Chief Executive Officer of operation of Coinbase in a post on the company’s website.
Choi noted that workforce growth is a key part of the company’s financial model and that slowing the hiring rate is important to ensure Coinbase can meet the profitability targets it has set for investors.
The news comes as cryptocurrency markets take a hit more broadly, catalyzed by uncertainty in broader stock markets as well as the recent collapse of stablecoin Terra UST.
Coinbase’s stock is down nearly 80% today from its IPO price, though it’s worth noting that the company’s revenue was already suffering from a drop in trading. year-to-date crypto trading volumes. The company, which depends on commercial activity for most of its revenue, posted a loss of $430 million in the first quarter of 2022.
Coinbase also sparked controversy last week for a disclosure in its quarterly report that shareholders could lose funds they deposited on the stock exchange in the event of bankruptcy. CEO Brian Armstrong tweeted an afterthought clarification, reassuring users that Coinbase has “no risk of bankruptcy” but adding that “it is possible, though unlikely, that a court may decide to consider customer assets as part of the company in bankruptcy proceedings even though it harmed consumers.”