coin base announced today that it will extend its hiring freeze and revoke accepted offers from some candidates who have not yet started their role.
Coinbase, the third-largest crypto exchange by volume, began slowing hiring two weeks agobut this step is more drastic.
“Rapid adjustments and immediate action will help us successfully navigate this macro environment and emerge even stronger, enabling continued healthy growth and innovation,” wrote Chief People Officer LJ Brock in a company announcementshared publicly on Coinbase’s blog.
Brock added that the hiring freeze will last as long as the macroeconomic downturn persists and that the hiring freeze will also apply to replacements. However, a replacement will still be hired for each role required for security and compliance.
“We will also be withdrawing a number of pending offers for people who have not yet started. This is not a decision we make lightly, it is necessary to ensure we only grow in the areas of the highest priority,” the statement continued. “All new hires will be emailed today with their updated offer status.”
Individuals whose offers have been withdrawn are eligible for Coinbase’s “generous compensation philosophy,” which the letter doesn’t elaborate on. But in late 2020, when CEO Brian Armstrong asked employees to quit if they were upset with the “apolitical‘ mission, Coinbase’s severance packages supported employees for four to six months, depending on length of employment, with six months of health insurance through COBRA. The company is also establishing a “Talent Hub” to offer additional support such as interview coaching and CV review to affected individuals.
“We always knew crypto would be volatile, but that volatility coupled with larger economic factors could test the company and us personally in new ways,” Brock wrote. “On the other hand, if we are flexible, resilient and have a long-term focus, Coinbase will come out stronger.”
Heading into 2022, Coinbase planned to triple its headcount. However, in its first-quarter financial results, the company said that capping headcount could be a way to control costs. The company reports a $430 million lossa bad omen for a crypto exchange that depends on trading activity for most of its revenue.
This was also announced today by crypto platform Gemini, led by co-founders and twin brothers Cameron and Tyler Winklevoss downsizing. Gemini laid off 10% of its workforce because “Turbulent market conditions likely to persist for some time.”
Unfortunately, this turmoil extends far beyond the crypto space. That is estimated in May alone 15,000 technicians lost their jobs as companies try to cut costs in tough economic times.
Coinbase extends hiring freeze, rescinds some accepted offers – TechCrunch Source link Coinbase extends hiring freeze, rescinds some accepted offers – TechCrunch