Coinbase extends lease term to "foreseeable future" and plans to cancel some offers

Two weeks after announcing plans to suspend the lease, the exchange said Cryptocurrencies; the Coinbase freeze will last for "the future." The company will also download some accepted job offers.

Coinbase said it notified potential customers of the canceled offer on Thursday. The company also said it would expand its layoff policy for those people and help them find jobs and review their resumes.

"After evaluating our business priorities, current staff, and vacancies, we have decided to withhold hiring for as long as this macro-environment requires," said L.J. Brock, Coinbase's chief of staff. He published a blog post on Thursday. "The extended hiring hiatus covers staff placements, excluding roles required to meet the high standards we have set for security and compliance or to support other critical work."

Coinbase lost more than 70 percent of its value this year as the sale of cryptocurrencies coupled with economic turmoil led to consumer declines and revenue declines. The pain is felt across most tech sectors, with Uber and Facebook parent Meta making similar moves and Robinhood slashing team member numbers by around 9%.

Before the 2022 drop, Coinbase was one of the top pilots in the tech industry. The company duplicated its workforce last year to 3,730 employees. Since its Nasdaq debut in April 2021, Coinbase reported a 12x increase in second-quarter revenue to $2.28 billion, while revenue jumped 4900% to $1.6 billion.

However, the technology companies with the highest growth rates over the past year have been hit the hardest this year as investors turn to assets deemed safer in a world with rising interest rates and rising inflation. With Bitcoin down by more than a third this year and Ethereum down 50%, fewer people are vying for Coinbase to open accounts and transact.

Last month, Coinbase announced that revenue for the previous quarter was down 27 percent year-on-year, while total trading fell to $309 billion in the first three months of 2022 from $547 billion in the fourth quarter.

"We always knew that cryptocurrencies would be volatile, but that volatility, coupled with important economic factors, could test the company and us personally in new ways," Brock wrote in a statement Thursday. "On the other hand, if we are flexible and resilient and stay focused over the long term, Coinbase will become even stronger."