Two of the largest crypto exchanges in the market have announced measures to reduce their labour costs ahead of what is being termed a ‘crypto winter’.
Coinbase has implemented a hiring freeze that will stay in place “for the foreseeable future”. It has also rescinded a number of accepted and outstanding job offers.
According to chief people officer LJ Brock, it has “become evident that we need to take more stringent measures to slow our headcount growth”.
The slump in the cryptocurrency market has had a knock-on effect for service providers such as crypto exchanges and Coinbase has seen its value drop by 70% this year.
“We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways,” said Brock in a blog posted on the Coinbase website.
Meanwhile, rival crypto exchange Gemini has said it will lay off 10% of its staff in reaction to the market conditions. The founder, Cameron and Tyler Winkelvoss, said in a blog post that the crypto winter has been “further compounded by the current macroeconomic and geopolitical turmoil”.
The company has also closed all of its physical offices in a bid to cut costs.
© 2022 fundsTech