Coinbase is Losing Credibility over Its Sudden ‘Hiring Freeze’

Coinbase

Coinbase Recently the popular crypto exchange Coinbase company announced a hiring freeze.

Coinbase is a secure online platform for buying, selling, transferring, and storing digital currency. It is to create an open financial system for the world and to be the leading global brand for helping people convert digital currency into and out of their local currency.  It’s particularly good for beginners to cryptocurrency who want a simple buying and selling experience without worrying about the complexities of external wallets and decentralized exchanges.

Recently popular crypto exchange Coinbase company announced that it was rescinding accepted job offers to new hires, in addition to its previously announced hiring freeze. Coinbase has lost more than 70% of its value this year as turmoil in the economy and a plunge in cryptocurrencies led to a decline in users. So they have decided to pause hiring for as long as this macro-environment requires as fears of rising interest rates rocked the cryptocurrency market.

 

The coinbase had earlier frozen hiring for two weeks:

Coinbase had been among the highest flyers in the tech industry. The company tripled the size of its staff last year to 3,730 employees. This company Global will extend its hiring freeze for the foreseeable future and rescind a number of accepted offers in order to deal with current macroeconomic conditions. The company seemed to be determined to triple its workforce even after weak first-quarter earnings, which resulted in its stock plummeting.

Coinbase said that it was informing prospects of the rescinded offers by email and also it was extending its severance policy to those individuals and will help them with job placement and resume review. Coinbase is taking another step further to reprioritize hiring needs against the highest-priority business goals and it was also establishing a “talent hub” for individuals.

So many tech companies with the highest growth rates in the 2021 year have been hit the hardest in the 2022 year as investors rotate into assets deemed safer in a world of rising interest rates and soaring inflation. Shares of Coinbase were flat following the news in after-hours trading. The company’s stock is down more than 75% since its market debut in the 2021 year through a direct listing. And may month have reported a 35% slump in total revenue to $1.17 billion for the three months ended March 31, missing analyst expectations and weighing on investor sentiment.

The crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways. The company’s stock is down more than 75% since its market debut last year through a direct listing. If we’re flexible and resilient and remain focused on the long term, Coinbase will come out stronger on the other side. The slew of hiring freezes and layoffs aren’t just limited to fintech; companies across all sectors of tech have been slowing hiring and letting go of staff.