US-based crypto trading firm Coinbase said it will slow down hiring after the current market downturn, its President and Chief Operating Officer (COO) Emilie Choi informed in a blog post while sharing an update on the firm’s hiring plans.
In April, Coinbase’s Chief Executive Officer (CEO) Brian Armstrong had said in a blog post that the company is planning to quadruple the number of employees in India by year-end, adding 1,000 to the existing 300 staff at its Indian tech hub, which started last year.
The company had announced that India will be the firm’s technology hub to develop global products and half of the new hires will be engineers and said that the nation will account for a quarter of the total 2,000 people that Coinbase plans to hire across product, engineering and design in 2022.
“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,” Choi said on May 16, 2022.
Heading into this year, Coinbase had planned to triple the size of the company. Given current market conditions, she said the firm feels it’s prudent to slow hiring and reassess its 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,” she added.
However, she assured that the changes mentioned are not expected to have any material impact to the company’s previously communicated expense outlook for Q2, or full-year 2022.
Founded in 2012, the crypto exchange offers a platform for users to buy and sell several cryptocurrencies, including Bitcoin, Ethereum, XRP, Litecoin etc.
Cryptocurrencies have been swept up in a sell-off this year in risk assets, which has picked up steam as data showed US inflation running hot, deepening investor fears about the economic impact of aggressive central bank tightening.