Weakened by the fall in cryptos, Coinbase puts a stop to its recruitments

Three weeks after the crypto crash, the giant Coinbase decided to pause its recruitment process.

After the crypto crash, it’s decision time for many cryptocurrency giants. After the giant Gemini which evoked a “crypto winter” to justify the dismissal of 10% of its employees out of the 1000 current positions, it is the turn of the American giant Coinbase to make announcements on its recruitment policy.

“In response to current market conditions and ongoing business prioritization efforts, we will be extending our hiring pause for new positions and replacements for the foreseeable future and canceling a number of accepted offers,” it said. read on the Coinbase blog.

The company does not give any details on the number of positions concerned. According to the latest data from the company, it had 4,948 employees in the first quarter of the year, compared to 1,717 in the same period a year earlier.

“Take more strict measures”

Two weeks ago, in the context of severe disruption in the cryptocurrency market, the company had to pause its recruitment process. “It has become clear that we need to take more stringent measures to slow the growth of our workforce,” the company adds.

To justify this decision, the company refers to the economic context, and in particular to the volatility of cryptocurrencies. “We always knew cryptocurrencies would be volatile, but that volatility, coupled with broader economic factors, could test the company, and us personally, in new ways.”

Revenues down 27%

In mid-May, Coinbase had published its results down for the first quarter of the year. Its net income fell to $1.17 billion in the first quarter from $1.6 billion a year earlier, down 27%. Its total transaction volume fell to 309 billion from 335 billion a year ago, and its number of monthly active users fell from 11.4 million to… 9.2 million.

The company explains these figures by the general context in the cryptocurrency market, with prices falling since the beginning of the year. “These market conditions had a direct impact on our first quarter results. But we have approached these market conditions with foresight and preparation, and we remain more excited than ever about the future of cryptocurrencies,” the company said. .

We now know some direct consequences taken by the giant Coinbase.

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