Coinbase announced this week that its workforce reached its highest point in almost two years, signaling a possible recovery in crypto industry hiring. This positive trend may hint at the sector’s gradual rebound from the market turmoil of 2022, which significantly affected hiring.
According to its latest quarterly report, Coinbase closed Q3 with 3,672 full-time employees, reflecting a 5% increase from the previous quarter and a 7% rise since the start of 2023. However, the staff count remains 18% below the 4,510 employees it had at the end of 2022. Coinbase added 186 new employees in Q3, rising from 3,486 employees at the end of Q2, marking its first substantial workforce expansion in a while.
Notable Q3 Investments in Workforce
In early 2023, Coinbase restructured and cut 21% of its workforce to lower operating costs and prioritize its core business amid ongoing market challenges. In Q3, Coinbase reported spending $271 million on personnel expenses and an additional $248 million on stock-based compensation, reflecting a strategic investment in its workforce with both direct salaries and stock incentives.
Mixed Q3 Financial Results and Broader Industry Trends
Despite the workforce expansion, Coinbase’s Q3 earnings missed expectations. Total revenue reached $1.2 billion, falling short of FactSet’s forecast of $1.26 billion. Earnings per share were $0.28, below the projected $0.45, while adjusted EBITDA reached $449 million, under the $469.2 million target.
While Coinbase’s hiring growth is encouraging, some industry counterparts have made significant staff reductions. Kraken recently laid off 15% of its workforce and appointed a new co-CEO, ConsenSys reduced its team by 20%, and dYdX trimmed its core team by 35%.
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