Friday, October 7, 2022

Coinbase Embarks On Cutting Down Expenses, Here’s Why

As the full effect of the current market condition sets in, Coinbase (COIN), just like most other crypto firms, is taking the “business first” approach. The leading exchange announced its cutback plans via a Thursday blog post, as it hopes to navigate the present situation and stay afloat as a business.

Coinbase Recruitments Still On Hold

In the post, Chief People Officer L.J. Brock, confirms that the company will maintain its stance on not hiring for the near future. And that includes for both new and replacement roles. According to Brock, the company will also have to go back on some of the offers it had already accepted. 

Speaking about what necessitated the cutback decisions, the officer says they are part of the firm’s ongoing efforts to prioritize the business. And as such, the survival of Coinbase would be tied to how well it is able to respond to the current market conditions.

“Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation.”

In essence, Coinbase will not only be rescinding on its already accepted offers, the firm will also extend its “no hire” policy, at least until further notice. 

Meanwhile, Coinbase has been quite intentional on its quest to cut costs by all means necessary. Therefore, today’s announcement only goes to prove the firm’s willingness to follow through with an earlier statement it released sometime last month. That time, CryptoMarketsBeat reported that the company announced an hiring freeze that would last only two weeks.

Crypto Firms Forced To Make Hard Business Decisions

Virtually all crypto-related businesses around the world have felt the damning effect of the recent market collapse. And to make things work, a large percentage of them have had to make unsavory business decisions. 

Therefore, Coinbase’s latest announcement is just one of many similar ones. For instance, top Latin American exchange Bitso has had to relieve 80 of its employees, of their duties. Similarly, Argentina’s Beunbit laid off almost half of its staff, while Gemini has also announced that it will terminate its business with 10% of its team.

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