Coinbase this week revealed that the exchange hit its peak workforce size in almost two years, suggesting a potential rebound in crypto industry hiring.
This growth is a hopeful indicator that the crypto sector may be recovering from the major market fluctuations that disrupted hiring in 2022.
In its latest quarterly update, Coinbase showed that the company ended Q3 with 3,672 full-time employees. This marks a 5% increase from the previous quarter and a 7% rise since the start of the year. However, it is still 18% lower than the 4,510 employees at the end of 2022.
Meanwhile, Coinbase had 3,486 full-time employees at the end of Q2 this year. Since then, it has added 186 staff members. Before this quarter, the workforce remained around 3,500 for a while — indicating this might be the first significant period of team expansion for Coinbase.
Major Q3 Workforce Investments
In Jan. 2023, Coinbase implemented a restructuring that impacted 21% of its workforce. This move aimed to reduce operating costs and refocus business priorities amid ongoing market challenges in the cryptoeconomy.
Financially, Coinbase reported in a 10-Q filing that it spent $271m on personnel costs in Q3. It also allocated $248m for stock-based compensation.
This means that Coinbase invested significantly in its workforce during the quarter, covering both direct expenses such as salaries and stock-based incentives for its employees.
Coinbase Misses Q3 Estimates as Revenue Falls Short
However, on Wednesday, Coinbase reported disappointing third-quarter earnings. Total revenue was $1.2b, below FactSet’s $1.26b estimate. Earnings per share were $0.28, missing the $0.45 forecast. Additionally, adjusted EBITDA was $449m, under the expected $469.2m.
While Coinbase’s growing headcount suggests a rebound in hiring, other industry players have cut staff. This week, Kraken announced it laid off 15% of its workforce and introduced a new co-CEO. Consensys reduced its team by over 160 employees, or 20%. At the same time, dYdX cut its core team by 35%.
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