Coinbase freezes employment and withdraws accepted job offers

Coinbase is withdrawing on its recruitment efforts. In a note posted on Coinbase’s website, CEO LJ Brock announced that Coinbase is taking a break from hiring new employees, in addition to withdrawing more job offers already accepted by potential workers, citing “current market conditions and ongoing business prioritization efforts. “

The shift comes as the cryptocurrency market continues to trend downwards, pulling with the supposedly immovable stable coins, which are linked to a fiat currency or commodity. Coinbase began slowing down employment in mid-May to ensure that the company is “best positioned to succeed during and after the current downturn”[ads1];, but this move stops employment completely. Brock notes that the freeze will also affect backfill, or the employees hired to replace workers leaving the company. However, it excludes those who are employed to fill roles in “safety and compliance”.

Coinbase is also struggling with an inadequate response to the social NFT market it launched widely in May. According to data from Dune Analytics seen by The Broken tooth, 4,132 people bought an NFT on the platform within 19 days of launch, and gross sales amounted to $ 875,000, or an average of $ 46,000 per day. It does not help that NFT sales fall in total, and fall to around 19,000 sales per week at the beginning of May, in contrast to 225,000 NFT sales in September.

It is unclear how many job offers Coinbase was withdrawn, and the company did not respond immediately The Vergehis request for comment. Brock says affected individuals will benefit from Coinbase’s “generous severance pay policy” and will have access to a talent center with various career resources, including interview coaching, resume review and networking opportunities.

The change at Coinbase has caused some potential employees to struggle. At least two people to be hired by Coinbase say that they may lose the OPT visa (optional practical training) due to the canceled offer. Others say they received an email assuring them that they would not lose their job due to the company’s decline in employment, only to receive an impersonal email notifying them of a canceled offer weeks later.

“You may have seen this week that Coinbase posted an external blog post announcing our intentions to slow down hiring so that we can re-prioritize our hiring needs toward our highest-priority business goals,” Coinbase’s first email to new employees states. “First of all, I wanted to communicate that we are still extremely happy to have you on Coinbase, and we will not withdraw the offers from any employees who have already signed or received an offer from us.”

Coinbase strengthened its staff as part of its plan to hire 2,000 employees by 2022, saying it foresaw “huge product opportunities ahead for the future of Web3” at the time. The latest earnings report reveals that Coinbase added 1,218 employees in the first quarter of 2022 alone, bringing the total number of employees to 4,948.

“Although we did not take this decision lightly, it is the reasonable given market conditions,” Brock said in the letter. “We will continue to evaluate all of our options to responsibly navigate Coinbase through the current cycle.”

Coinbase’s layoffs are an indication of cooler conditions for the cryptocurrency market, as are the redundancies from other companies in the blockchain. Cameron and Tyler Winklevoss, the twins behind the Gemini cryptocurrency exchange, also announced that they are cutting 10 percent of employees. The same goes for Rain, a large crypto exchange based in the Middle East, which also laid off dozens of employees.

Last week, famed shorts seller Jim Chanos called Coinbase “hugely overrated” on Crypto Critics Corner podcast (via Fortune), and predicts that the share price will be “in their mid-teens” by the end of this year. Coinbase shares fell 9.7 percent after the news of the layoff was announced on Friday.

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