Coinbase to Suspend Hiring in a Bid to Manage Current Market Downturn

Emilie Choi, the President and Chief Financial Officer of America’s biggest cryptocurrency trading platform, Coinbase Global Inc has announced the firm will be taking a laid-back approach when it comes to its earlier plans to hire new staff. The move was so decided considering the heavy blow the industry has suffered lately, which has also largely translated into the shares and business outlook for Coinbase.

“To ensure we’re best positioned to succeed during and after the current market downturn, we’re announcing we’re slowing hiring so we can reprioritize our hiring needs against our highest-priority business goals,” Emilie wrote in a blog post shared on Tuesday.

Emilie said the measures will help the firm to emerge stronger than it currently is, while also giving recent hires the opportunity to become appropriately integrated into the Coinbase workspace.

“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals. Headcount growth is a key input to our financial model, and this is an important action to ensure we manage our business to the scenarios we planned for, specifically the potential Adjusted EBITDA we are aiming to manage to,” Choi added.

Coinbase Battery in Correlation With Bitcoin

Coinbase experienced its glory days a while back at a time when Bitcoin’s price surged to its highest price levels. However, in the year-to-date period, the digital currency has plunged remarkably, hitting its 16-month low below $27,000 last week.

As a firm whose business strategy is hinged on the nascent crypto ecosystem, Coinbase has recorded a similar downtrend in its shares which are down by about 70% in the year-to-date period.

With the extreme devaluation of crypto and the company’s shares, cutting cost strategies comes off as one of the primary avenues to secure its footing and weather the current storms it is facing at the moment. Confusing as this period may seem, Emilie said the current events will also help the firm in making appropriate prioritizations in its broad dealings.

“We know this is a confusing time and that market downturns can feel scary. But as we said at last week’s Town Hall, we plan for all market scenarios, and now we are starting to put some of those plans into practice,” she said.