Coinbase CEO’s hard-hitting decision.
Earlier today, CEO of Coinbase Brian Armstrong went on to release a note. The note stated
“Today I am making the difficult decision to reduce the size of our team by about 18%, to ensure we stay healthy during this economic downturn. I want to walk you through why I am making this decision below, but first I want to start by taking accountability for how we got here. I am the CEO, and the buck stops with me.”
Since the crypto market implosion, there are many cryptocurrency dealing institutions, exchanges that have resorted to cutting of their work force in order to cut the company’s cost. As the market is continuing to fall, more and more companies in the market are resorting to cutting off their workforce. Coinbase being one of the largest crypto currency exchanges is no different.
Why did Brian Armstrong take such a hostile decision towards his team? Let’s see.
In the past month or so, Brian Armstrong has had multiple meetings with the executives at top of the management and the board of the company to discuss the viability and future approach of the company to beat the down run. After the discussions, the major points that have gained his attention were:
- Everchanging Economic Conditions
- Managing costs or cutting costs at critical times
- The unsustainable growth
From the points discussed above, Brian certainly feels that the priority has to be given to factors such as the need to manage the expenses and the need to increase the efficiency of the company. Both the objectives set out are expected to directly impact the employment opportunities at the company.
Laid off employees to receive an email from HR.
Brian stated that each and every employee will be receiving an email from the HR informing the employee about the termination. Every terminated employee will also receive an invitation to have a direct conversation with your HRBP and the senior leader of the organization.
Partial security provided to laid-off employees.
Coinbase also promises to help the employees who are being laid-off. Brian said that he wants to make sure that all the affected employees are taken care of in this transition process and will support them to find a new role. The employees are expected to receive:
- A minimum of 14 weeks of severance pay, plus an extra two weeks for each year of service beyond one year.
- 4 months of COBRA health insurance in the United States, as well as 4 months of global mental health support
- Access to the Coinbase Talent Hub, where members of the Coinbase team will connect you with open roles at other companies (including portfolio companies from Coinbase Ventures and other top crypto VC funds)