Because of the market, Coinbase decides not to hire new employees.
To better manage the bear market conditions and emerge stronger, Coinbase revealed that it has un-hired some of the new hires and has suspended additional employment offers. L.J. Brock, the chief people officer at Coinbase, sent an email to the newly hired employees informing them of the cancellation. The sender will no longer start their new job at Coinbase, according to the email, which explained that the company revised its employment plans owing to quickly shifting market conditions. In order to make up for the inconvenience, Coinbase launched a talent hub and provided a severance package equal to two months’ wages for those who were not employed.
The number of recruits who received the rescinding email is unknown. Twitter users were interested in the un-hiring frenzy. Jason Choi, an angel investor, came up to support the impacted people. When Coinbase’s first quarter 2022 earnings report was published in May 2022, it mentioned insolvency, which incensed the community. The document stated specifically that user funds might be regarded as belonging to a bankrupt estate. These monies would be subject to bankruptcy proceedings in the event that Coinbase file for bankruptcy. Additionally, Coinbase’s trading volume for the first quarter of 2022 decreased by 40%. The question of whether Coinbase was going bankrupt or not was raised by the declining volume and bankruptcy terminology.
Following the announcement by Gemini, another cryptocurrency exchange company, Coinbase made the decision to stop employing new employees altogether. Gemini’s founders informed personnel through a company memo on June 2 that 10% of the workforce would be let go in order to weather the crypto winter. Gemini gave the same justifications as Coinbase, claiming that everyone in the sector, including itself, was impacted by the declining pricing, geopolitical unrest, and stagnant development.