Media reports cost-cutting at Coinbase after a weak start to the year

The Bitcoin exchange Coinbase paused expanding its headcount for two weeks and cut spending on Amazon Web Services as part of a broader cost-cutting programme. The Information reports, citing sources.

COO and Coinbase president Emily Choi warned about reassessing the need for staff in light of the current downturn in the cryptocurrency market.

The new steps followed a net loss of $429.7 million for the first quarter (about twice market expectations).

According to the report, the company will grant additional stock options to compensate for half the difference between the strike price and the closing price of the securities as of May 13.

Coinbase’s Chief Product Officer Surojit Chatterjee revealed on Twitter the details of the plan to boost business efficiency.

On Tuesday I sent out a memo announcing that we will be increasing our focus on critical revenue-generating products. Here are some more details 🧵

— surchatt.eth (@surojit) May 19, 2022

A senior executive proposed expanding the range of trading instruments for retail and institutional clients, and assets for staking. He explained that the company does not intend to halt investing in strategic and venture projects.

Earlier, the online broker Robinhood cut its staff by 9% amid a 75% slide in its stock since the IPO.

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