Coinbase withdraws hiring efforts. In a memo posted on Coinbase’s website, Human Resources Manager LJ Brock announced that Coinbase was pausing the hiring of new employees, as well as canceling several job offers already accepted by workers. potential, citing “current market conditions and ongoing business prioritization efforts.”
The change comes as the cryptocurrency market continues to decline, dragging with it supposedly immobile stablecoins, which are pegged to fiat currency or a commodity. Coinbase began slowing hiring in mid-May to ensure the company is “best positioned to succeed during and after the current downturn,” but the move halts hiring altogether. Brock notes that the freeze will also affect backfills or employees hired to replace workers leaving the company. This, however, excludes people hired to fill “security and compliance” roles.
Coinbase is also facing a lackluster response to the NFT social marketplace it widely launched in May. According to data from Dune Analytics viewed by The motley fool, 4,132 people purchased an NFT on the platform within 19 days of its launch, and gross sales amounted to $875,000, averaging $46,000 per day. It doesn’t help that NFT sales are down overall, falling to around 19,000 sales per week in early May, as opposed to 225,000 NFT sales in September.
It’s unclear how many job postings Coinbase has rescinded, and the company didn’t immediately respond to The edgerequest for comment. Brock says those affected will benefit from Coinbase’s “generous termination policy” and have access to a talent center with various career resources, including interview coaching, resume review, and networking opportunities.
The change at Coinbase has left some potential employees struggling. At least two people who will be hired by Coinbase say they could lose their OPT (optional hands-on training) visa due to the canceled offer. Others say they received an email reassuring them that they won’t lose their newly accepted job due to the company’s hiring slowdown, only to receive an impersonal email notifying them of a canceled offer weeks later .
Coinbase sent a welcome email to new employees 2 weeks ago, promising that they would not cancel offers (1st image).
Yesterday they sent out the cancellation emails (2nd image) leaving applicants frustrated.
We have an ongoing referral thread to help those who have been affected pic.twitter.com/lIQe0ph4rk
— Blind (@TeamBlind) June 3, 2022
“You may have seen this week that Coinbase published an external blog post announcing our intentions to slow down hiring so that we can redefine our hiring needs against our highest priority business goals,” the first reads. Coinbase email to new recruits. “First, I wanted to communicate that we are still extremely excited to have you join Coinbase and we will not be rescinding offers from employees who have already signed up or received an offer from us.”
Coinbase bolstered its staff as part of its plan to hire 2,000 employees in 2022, saying it saw “huge product opportunities for the future of Web3” at the time. Its latest earnings report reveals that Coinbase added 1,218 employees in the first quarter of 2022 alone, bringing its total headcount to 4,948.
“While we did not make this decision lightly, it is a prudent decision given market conditions,” Brock said in the letter. “We will continue to evaluate all of our options to navigate Coinbase responsibly through the current cycle.”
Coinbase’s hiring freeze is an indication of colder conditions for the cryptocurrency market, as are layoffs at other blockchain companies. Cameron and Tyler Winklevoss, the twins behind cryptocurrency exchange Gemini, also announced they are cutting 10% of their staff. The same goes for Rain, a large Middle East-based crypto exchange, which also laid off dozens of employees.
Last week, well-known short seller Jim Chanos called Coinbase “extremely overvalued” on the Crypto Critics Corner podcast (via Fortune), and predicts that its stock price will be in “mid-teens” by the end of this year. Coinbase shares fell 9.7% after news of the hiring freeze broke Friday.