Coinbase (COIN) will slow hiring amid the plunge in crypto and tech stocks

Coinbase reported a 27% decline in revenue in the first quarter due to the decline in platform usage.

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Coinbase became the latest tech company to warn of a slowdown in hiring.

The cryptocurrency exchange told staff on Tuesday it would slow hiring and reevaluate its staff, canceling previous plans to triple its workforce in 2022.

“Given the current market conditions, we believe it is prudent to slow down hiring and re-evaluate our staffing needs against our priority business goals,” said Emilie Choi, Coinbase’s chief operating officer, in a blog post.

“Staff growth is a key input to our financial model and this is an important action to ensure that we run our business according to the scenarios we had planned.”

With once high-flying tech stocks in the doldrumscompanies are re-evaluating their plans in an effort to convince investors that they can weather the storm. The Nasdaq Composite has lost around a quarter of its value since the start of the year due to concerns over rising inflation and aggressive interest rate hikes by the Federal Reserve.

Coinbase was particularly affected, with its shares plummeting 74% year to date, due to a drop in the prices of bitcoin and other digital currencies. Bitcoin briefly it fell below $ 26,000 Thursday, the lowest level since December 2020, after collapse of the Eartha controversial stablecoin project.

Coinbase shares were up about 7% on Tuesday.

Coinbase, which derives most of its revenue from trading fees, reported a 27% decline in revenues in the first quarter as platform usage decreased. In a call with analysts, Coinbase management said the company is investing “quite heavily” in compliance, but hinted at the slowdown in hiring as one of the “levers” it could use to cut costs.

“We know this is a confusing time and market downturns can be frightening,” Choi said Tuesday. “But … we plan for all market scenarios and are now starting to put some of those plans into practice.”

He added: “We are in a strong position: we have a solid balance sheet and we have already gone through several market downturns before and have emerged stronger and stronger.”

The move makes Coinbase the latest tech company to commit to reducing investment in hiring. Above and the parent company of Facebook A half they have taken similar steps, while Robinhood is cutting its staff about 9%.

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