Coinbase Stock Bounces on Plan to Slow Hiring
2022.05.17 20:46
By Liz Moyer
Investing.com — Coinbase Global Inc (NASDAQ:COIN) shares rose 12% on Tuesday after the company said it would slow its hiring plans this year.
The cryptocurrency exchange operator had planned to triple its size heading into 2022, but is now taking a step back to “reassess” headcount needs, according to a blog post by Emilie Choi, its president and chief operating officer. The company had 4,900 employees as of the end of March, according to its website.
“Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals,” the post said.
Coinbase shares are down 72% this year after a swoon in crypto assets such as Bitcoin, which is now trading around $30,000, down from its high of nearly $68,000 last November. First quarter revenue — which is mostly made up of trading fees — fell 27% as users shied away from the volatile crypto market.
The downturn in tech in general has led other companies to reassess staffing. Robinhood Markets Inc (NASDAQ:HOOD) said last month it would cut 9% of its workforce after a period of rapid growth for the company.
“We’ve made an important decision to ensure we’re being rigorous in our resource prioritization so we can emerge from this down cycle even stronger than we are today,” Coinbase’s Choi said in the blog post.
