Crypto exchange Coinbase (COIN) will slow down hiring and reassess headcount needs as the broader crypto market sees a downturn, the firm said in a note to employees.

“We’re slowing hiring so we can reprioritize our hiring needs against our highest-priority business goals,” said Emilie Choi, president and chief operating officer at Coinbase, in the note.

Choi added the move was to ensure the business was “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 is a departure from Coinbase’s plan to triple its headcount earlier this year, as reported. The exchange planned to hire up to 2,000 people to expand its product, engineering and design teams as recently as February.

Choi stated the crypto exchange remained in a strong position and had a “solid balance sheet” to make it through a market downturn.

The note comes days after a weak earnings report last week. Coinbase reported $1.17 billion in revenue for the first quarter 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 Q4 2021. Shares tumbled 26% following the report, adding to a nearly 70% decline in the past year.

Premarket futures rose 7.3% as per MarketWatch data. A lower headcount could mean slightly lower costs to the business and help increase profits.