This comes even as the company had announced plans to triple its headcount in India.
“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals,” said Emilie Choi, president and chief operating officer, in a blog post on Tuesday. “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,” Choi added.
In April, Coinbase founder and chief executive Brian Armstrong said it
would triple its headcount to 1,000 people across technology, product, design, and business roles, in India.
A spokesperson for the company, however, said its “commitment to our current markets, including India, remain unchanged.”
Coinbase’s revenue dropped 27% from a year ago, while it reported a net loss of $430 million in the first quarter of 2022. The company’s stock is trading 70% lower than in March, amid a broader stock sell-off that has particularly hit tech companies.
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“Importantly, now is the time to ensure we are fully integrating all recent hires — so we can ensure that they are successful at Coinbase. This slowdown will also force us to be more rigorous in our prioritization,” Choi said in the blog post.
Separately, in a strongly worded reaction to its recent run-in with the Reserve Bank of India, Armstrong had said last week that the company
disabled its Unified Payments Interface (UPI) services because of “informal pressure” from the central bank.
