thecoinrepublic.com
Due to the crypto market’s decline, Coinbase will not hire anyone for the next 14 days and will cease some of its business projects.
Coinbase appears to have been impacted by the recent cryptocurrency market crash.
According to reports, the main digital asset platform would halt hiring for two weeks, pause several business projects, and reduce its spending on Amazon Web Services.
Employees will also be compensation
The cryptocurrency market has had a rough few weeks and months, with prices falling across the board, and this has hurt some of the industry’s biggest names. Coinbase was one of them, with losses exceeding $400 million in the first quarter of 2022.
These events led to a significant shift in strategy for the largest US-based exchange, which recently announced that it would have to slow down on new hires.
According to The Information, the corporation has followed through on this promise and will not hire new employees for the next 14 days. The exchange will also suspend several commercial ventures and cut its Amazon Web Services investment.
Employees will also be compensated with stock grants by the company. Coinbase became the first large exchange to have its shares openly traded when it began trading on Nasdaq last year. COIN was about $400 when it first launched, but it now trades at around $67.
The company’s plans to expand its workforce size are being thwarted by the slowing hiring drive.
Coinbase added 1,200 new employees in Q1 2022, bringing the total number of employees to over 5,000. The future state of the crypto market, it appears, will have a significant impact on how the expansion unfolds throughout the year.
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Tighten its team’s discipline
Surojit Chatterjee, Coinbase’s Chief Product Officer, also spoke up about the company’s short-term objectives.
According to the CEO, the exchange will focus on “important revenue-generating products.” Retail and institutional services, as well as staking, are examples of such services.
Coinbase will also tighten its team’s discipline and seek ways to improve efficiency, according to the executive:
“Finally, I advised our team to focus on core operations for maximum impact, boost efficiencies, and make sure that all of our projects are well-positioned for long-term success.”