Crypto exchange Coinbase (COIN) will slow hiring and reassess staffing needs as the broader crypto market experiences a downturn, the company said in a memo to employees.
"We are slowing hiring so that we can align our hiring needs with our priority business objectives," Emilie Choi, president and chief operating officer at Coinbase, said in the memo.
Choi added that the move is intended to ensure that the company is best positioned to succeed during and after the current market downturn. "Market downturns can feel scary ... we plan for all market scenarios, and now we are starting to put some of those plans into practice," Choi said.
The move diverges from Coinbase's plan to triple its headcount earlier this year, as reported. As recently as February, the exchange planned to hire up to 2,000 employees to expand its product, engineering and design teams.
Choi said the crypto exchange remains in a strong position and has a "solid balance sheet" to weather a market downturn.
The note comes days after a weak earnings report last week. Coinbase reported revenue of $1.17 billion for the first quarter of this year, compared with analysts' average estimate of $1.5 billion, according to FactSet.
The exchange also reported a quarterly net loss of $430 million, compared with a profit of $840 million in the fourth quarter of 2021. Shares plunged 26% after the report, having already fallen nearly 70% in the past year.
Pre-market futures rose 7.3%, according to MarketWatch data. A smaller workforce could mean slightly lower costs for the company and help boost profits.