Source: Bloomberg. com
On Friday, June 3, Coinbase made the announcement stating that it will extend its hiring freeze. Along with it, rescind accepted job offers from certain candidates who had not yet started their jobs yet. About two weeks ago, the third-largest crypto exchange by volume initiated slowing down on its hiring. However, this new step from Coinbase comes across as much more drastic.
L.J. Brock, the Chief People Officer of Coinbase shared a written company memo publicly to Coinbase’s blog. In it, he stated how fast adaptation and ‘acting now’ would aid them in successfully navigating ‘this macro environment.’ Along with it, help them in emerging significantly stronger, allowing ‘further healthy growth and innovation.’
Additionally, he specified that this hiring freeze would last as long the macroeconomic downturn persists, with the freeze also applying to backfills. On the other hand, any role essentially required for security and compliance would take on a replacement.
The note further said that the company would revoke a range of ‘outstanding offers’ for ones who had not began their roles. Clearly, the company is not taking this decision lightly, but noted how it is ‘necessary’ to make sure that they only grown in the top priority sectors.’
“All incoming hires will be advised of their updated offer status today by email.”
Reportedly, candidates who got their offers revoked would be eligible for the company’s ‘generous severance philosophy’ which is not elaborated upon. Towards the end of 2020, chief executive Brian Armstrong called on the staff to resign if they were opposed to Coinbase’s “apolitical” mission. At this time, its severance packages supported the workers for four to six months, depending on their extent of employment, along with health coverage of six months through COBRA.
Currently, the company is reportedly setting a ‘talent hub’ to offer affected people added supported. This includes provisions for interview coaching, along with reviews of resumes. Earlier this year, Coinbase actively aimed to triple its company headcount. However, it stated that they could possibly manage costs by limiting headcount, in its first quarter financial results. At the time, it reported a loss of $430 million, clearly alarming for a crypto exchange for they mainly rely on trading activity for majority of its revenue.
Moreover, another crypto platform, Gemini announced it was cutting down on its workforce on the same day, laying of 10% of its staff. Co-founders and twins Cameron and Tyler Winklevoss stated this was owing to “turbulent market conditions” that could possibly last for a while.
