Coinbase, the largest cryptocurrency exchange in the United States, said on Thursday that it would extend the recruitment freeze for new and existing positions in the "foreseeable future" and terminate contracts with some job seekers who have received offer letters In a blog post on Thursday, the company mentioned the market conditions and ongoing business "prioritization efforts" that led to its decision.
Bitcoin has fallen by more than 55% from its record high in November last year, while other so-called alternative currencies have fallen even more, because investors are reassessing the industry, and central banks have withdrawn their stimulus measures during the COVID-19.
Some Wall Street analysts warned that the cost of coinbase was too high. The number of full-time employees of the company has surged from about 1700 a year ago to 4948. Due to excessive expansion, the company's total operating cost reached $1.7 billion in the first quarter, an increase of 9% over the previous quarter
In a memo sent to employees on May 17, surrojitchatterjee, chief product officer of coinbase, said that the company would pay more attention to "key revenue generating products" and seek to improve the productivity of developers by doubling its investment in core products.
On the same day coinbase announced this decision, Gemini trust, a cryptocurrency company run by billionaire Cameron and Taylor Winklevoss brothers, announced a 10% layoff. According to people familiar with the matter, rain financial, one of the largest cryptocurrency exchanges in the Middle East, also laid off staff and laid off dozens of employees. The company's main supporters come from Silicon Valley.
Learn more: