If you recently received an offer from crypto exchange giant Coinbase and are yet to start, do not get too excited. There is every possibility that your offer will be rescinded by the crypto exchange as it attempts to navigate through the mess the crypto market is currently in.
Coinbase announced the same in a blog post, citing market conditions and ongoing business “prioritization efforts” as reasons. To pile on to the misery, it will be extending its hiring freeze for both new and backfill roles for the foreseeable future, that is, as long as the macroeconomic downturn continues and cryptos continue to tumble from their all-time highs.
This will not include roles that are necessary for security and compliance, in which cases it will hire replacements. Shares of Coinbase fell to an all-time low in May, although they rose 7.6% to $73.82 on Thursday.
This comes after it had begun to pause hiring and reprioritize its hiring needs against its “highest-priority business goals,” it said. “Adapting quickly and acting now will help us to successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation,” wrote L.J. Brock, Chief People Officer, Coinbase, in the blog post.
At least no existing Coinbase employee will be getting the boot, which is more than what can be said for employees of other companies. The ongoing crypto winter and the bear phase of the market have enabled several other companies to lay off their employees and cut down on costs. Before Coinbase, the latest crypto exchange to do so was Gemini, which announced on Thursday that it was laying off 10% of its staff, or roughly 100 people.
Other crypto exchanges to sack employees in response to the market crunch are Latin American Bitso (80 employees), Argentina’s Buenbit (nearly 50% of its staff), and Middle Eastern exchange Rain (said to have laid off dozens.)
Coinbase said that its decision to rescind several offers is to ensure that it clocks a growth only in the highest-priority areas and that it will inform all incoming hires of their updated offer status today. So keep your fingers crossed.
For those who end up drawing the short straw, Coinbase will ensure that they are eligible for its “generous severance philosophy.” Its severance packages support employees for four to six months, depending on their length of employment, with six months of health coverage.
Additionally, it will establish a “talent hub” for impacted individuals to allow them to opt-in to receive additional support services. These include support for job placements, review of resume, interview coaching, and access to Coinbase’s connections in the industry.
