Coinbase ($COIN) Resorts to Slow Hiring After $430M First Quarter Loss

America’s largest crypto exchange Coinbase has disclosed its plans to slow down hiring as the company faces headwinds following its poor earnings in the last quarter. 

Coinbase Slows Down Hiring

Coinbase President and Chief Operating Officer (COO) Emilie Choi said the move will help re-prioritize the company’s needs and direct its resources towards achieving its business goals during and after the current  bearish market. 

“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.

The Coinbase COO further noted that now is not the time to onboard more employees as the company plans to fully integrate its recent hires to ensure they are successful amid current market conditions. 

Coinbase’s decision to slow down hiring comes just three months after the company announced its plans to hire up to 2,000 employees across its Product, Engineering, and Design teams. At the time, the exchange stated that it sees “enormous product opportunities ahead for the future of Web3.”

Meanwhile, the company has launched its first Web3 application that allows eligible users to access Ethereum-based decentralized applications (dApp) directly on their Coinbase mobile app.

Coinbase Disappointing Quarterly Report

Despite a disappointing Q1 earnings report, Choi said Coinbase still has a strong balance sheet.  Coinfomania reported last week that the company released its first quarter earnings report showing a net loss of $430 million. The exchange generated a total revenue of $1.16 billion in Q1, representing a 35% decline in its year-to-year revenue from analysts expectations of $1.5 billion. 

Coinbase shares (COIN) plummeted to an all-time low of $52.88 after the company released the Q1 report. Although COIN has since recovered and is currently trading at $61.70 at the time of writing, it is still 75% down on the year-to-date chart.