Coinbase announced that it would extend its wait to hire for the new and replacement positions. In addition, the firm announced that it would withdraw several accepted offers. Director of Human Resources LJ Brock made the statement in a blog post.
According to Brock, the layoffs are being made in response to current market realities. In addition, Coinbase has ongoing prioritization initiatives due to the bearish state of the market.
Due to cost-cutting measures, Coinbase will revoke a few granted offers. This decision will affect prospects who have not yet started working for the company. In addition to revoking granted offers, he will extend the hiring freeze by two weeks. Nonetheless, they will reassess the two weeks based on market forces.
The freeze on new hires extends a plan announced the previous month. Coinbase’s announcement comes after another exchange, Gemini, revealed it would lay off nearly 10% of its employees through a statement.
Cryptocurrency exchanges around the world said they are feeling the pressure from the market. For example, the leading cryptocurrency exchange in Latin America, Bitso, recently laid off 80 people.
Argentina’s crypto exchange, Beunbit, has cut its workforce by nearly half. Additionally, Rain’s exchange in the Middle East reportedly laid off a few employees.
Coinbase’s woes continue
Coinbase has had quite a bit of trouble lately. Previously, it suffered an outage as most users were unable to withdraw funds. The outage added anxiety amid bitcoin’s global decline.
The company acknowledged the woes and reached out to customers via a statement. They assured investors of the security of their resources.
Your funds are safe and we are working hard to find a solution to this problem. We will post an update on this page soon.
Later, the company said it was seeing recovery after performing a remedy. Yet their staff continues to monitor the situation. This suggested that the problem had improved.
Users who participate in communities on Reddit have complained that the company is delaying takedowns. Also, a user reported that they couldn’t access the website or app.
Did their servers go down because of the bear market? The message feared that it would be pretty terrifying for someone who wants to get a quick deal.
The delay occurred during the crash in crypto prices, adding exceptionally high urgency to transactions and withdrawals. The bitcoin price fell below $30,000, representing a loss in value of more than 25% in one month.
The sharp drop in prices has forced many coin holders to liquidate their holdings. The market correction hit Coinbase so hard. Over the past week, the value of the company’s shares has more than halved. Since then, the company has just disclosed a sharp drop in revenue.
Coinbase users develop cold feet on financial submission
Users are fond of a financial submission that recommends account holders as creditors in a bankruptcy filing. This filing gave the impression that users could lose money from their Coinbase accounts if the company went bankrupt. This repository has caused a lot of anxiety among users.
Coinbase CEO Brian Armstrong responded to the allegations by denying that there was any risk to customers’ money.
For his part, Coinbase’s Brock believes the company’s ability to quickly adapt and act is key. He argues that this move will help them get through the current macro-climate effectively. Nonetheless, Brock believes Coinbase will rebound stronger. They foresee a buoyant future, healthy expansion and innovation.
Crypto exchanges have been struggling since the start of the collapse. Most investors withdrew their holdings to reduce the risk of losing money. As a result, it has become difficult for DEX to maintain normal operations. The problems Coinbase faces are not unique to them.