Coinbase Stock Jumps on Plan to Scale Back Hiring

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Coinbase had planned to triple in size when the year began.

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Coinbase Global, the trading platform for cryptocurrencies, was climbing on Tuesday after Chief Executive Officer Emilie Choi said the company will be slowing down its hiring.

Coinbase (ticker: COIN) stock has been having a difficult year. Shares of the crypto trading platform had fallen 74.2% so far this year. At the close on Monday, less than a week after Coinbase posted disappointing earnings, the stock was down 9.1%.

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The stock was trading 4.8% higher on Tuesday.

In a note to employees that was also made public, Choi said, “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 that heading into 2022, the company had planned to triple in size. But, given market conditions, “we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals,” the CEO said.

“Headcount growth is a key input to our financial model, and this is an important action to ensure we manage our business to the scenarios we planned for, specifically the potential Adjusted EBITDA we are aiming to manage to.”

Coinbase isnt the first tech company to change its staffing plans this year. Amazon.com (AMZN) and Facebook parent Meta Platforms (FB) are just two others who also recently announced plans to slow down hiring for their companies.

Write to Angela Palumbo at [email protected]

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Credit: www.marketwatch.com /

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