Cryptocurrency exchange platform Coinbase rescinded a number of job offers and will continue a hiring pause for new and backfill roles indefinitely, according to a blog post.
The post, published yesterday by Coinbase Chief People Officer L.J Brock, laid out the factors that caused the company to extend its original hiring freeze.
“We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways,” Brock said.
The freeze applies to all roles, with the exception of roles “necessary to meet the high standards we set for security and compliance, or to support other mission-critical work.” Coinbase also rescinded accepted job offers as well as outstanding offers for people who haven’t started yet, with the same exceptions.
“This is not a decision we make lightly, but is necessary to ensure we are only growing in the highest-priority areas,” Brock said.
Coinbase joins a number of other finance companies feeling the lasting effects of the pandemic economic crisis. In April, Robinhood, a stock trading app, laid off 9 percent of its staff, while Gemini Trust, a crypto business run by Cameron and Tyler Winklevoss, told staff on Thursday about plans to cut the company’s workforce by 10%.
Coinbase posted huge losses in Q1 of 2022, announcing a $430 million loss in May, and active monthly users declined 19% from the fourth quarter of 2021. In the four days leading up to its earnings release last month, Coinbase’s shares declined 43%, hitting $53 per share, a far cry from the $429 per share the company’s stock hit last year of its initial public offering.
Users on Twitter were quick to comment on the Coinbase freeze.
“Seeing multiple people whose offers were rescinded by Coinbase now looking for opportunities on LinkedIn,” one user wrote. “The worst is someone who’s on a visa who has now had their status placed at risk by Coinbase reneging on their offer. Really irresponsible behavior by the company to do this.”
“Apparently Coinbase didn’t just ‘stop hiring,’ They also pulled accepted offers,” wrote another. “That means they ghosted interns, who now have zero prospect of finding work for the summer. How is web3 meant to attract talent if even giants like Coinbase can’t guarantee any kind of job stability?”
Coinbase did not respond to a request for comment.
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