Coinbase, one of the largest crypto exchanges in the U.S., is pausing its hiring ahead of a crypto winter, highlighting the fact that it lost $430 million in the first quarter of the year.
As a a result, the crypto exchange wants to pursue "more stringent measures" in the hiring process, including by rescinding employment offers for employees who haven't started yet.
The news of Coinbase's employment reduction plans first surfaced last month as it withdrew offers from accepted employees.
“Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation,” Coinbase's Chief People Officer L.J. Brock said.
The news comes as rival exchange Gemini also announced layoffs, cutting 10% of its workforce after saying that it was impacted by “turbulent market conditions that are likely to persist for some time.” The company also shut down all of its physical offices and switched to remote work as another cost-saving measure.
Last week, crypto exchange Bitso in Latin America also fired 80 workers.
There has been a broader hiring freeze for crypto companies who have faced a bloodbath thanks to recent crypto market drops.
Despite the hiring freezes at crypto exchanges, other crypto companies have taken a more optimistic tone. This week, Fidelity said that it would increase its crypto trading-related staff. Additionally, valued at $32 billion, the second-largest crypto exchange FTX said it would add equities trading to its portfolio due to the current volatility in crypto markets and fears over a crypto winter.