Coinbase announced today that it will extend its hiring freeze and revoke accepted offers from some candidates who have not yet started their duties. Coinbase, the third largest crypto exchange by volume, started slowing down trading two weeks ago, but this move is more drastic. “Adapting quickly and acting now will help us successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation,” chief people officer LJ Brock wrote in a company memo, shared publicly on the Coinbase blog. Brock added that the hiring freeze will persist as long as the macroeconomic downturn continues, and that the freeze will also apply to replacements. However, any role that is necessary for security and compliance will continue to hire a replacement. “We will also be terminating a number of pending offers for people who have not yet started. This is not a decision we make lightly, but one that is necessary to ensure that we are only growing in the highest priority areas.” “All incoming hires will be informed today by email about the status of their updated offer.” People whose offers were rescinded will be eligible for Coinbase’s “generous compensation philosophy,” which the letter does not elaborate on. But in late 2020, when CEO Brian Armstrong invited employees to resign if they were upset with the company’s “apolitical” mission, Coinbase’s severance packages backed employees for four to six months, depending on the length of the job. employment, with six months of health coverage through COBRA. The company is also setting up a “talent hub” to offer additional support to affected individuals, such as interview preparation and resume review. “We always knew that cryptocurrencies would be volatile, but that volatility coupled with larger economic factors may test the company and us personally in new ways,” Brock wrote. “If we are flexible and resilient, and stay focused on the long term, Coinbase will come out stronger on the other side.” Looking ahead to 2022, Coinbase planned to triple its headcount. But in its first-quarter financial results, the company said limiting staff could be one way to manage costs. The company reported a loss of $430 million, a bad omen for a cryptocurrency exchange that relies on trading activity for most of its revenue. The Gemini crypto platform, led by co-founders and twin brothers Cameron and Tyler Winklevoss, also announced today that it would reduce its workforce. Gemini laid off 10% of its staff due to “turbulent market conditions that are likely to persist for some time.” Unfortunately, this turmoil extends far beyond the crypto space. In May alone, an estimated 15,000 tech workers lost their jobs as companies try to cut costs during a tough economic time.
