While Coinbase initially wanted to expand its team, the company has decided to halt this process and even revoke some candidates' offers that were already accepted. The revoked offers will only be limited to candidates that have not yet started with their roles.
Coinbase Decides to Freeze Hiring and Revoke Certain Applications
According to the announcement by Coinbase, they have decided to freeze their hiring and revoke certain applications. The company started to slow down its hiring process a few weeks ago, but its recent decision was described as "more drastic."
Coinbase's L.J. Brock, the Chief People Officer, stated in a company memo that adaptation will allow the company to "navigate this macro environment," and will also result in the company being able to move towards healthy growth and innovation.
Decision to Freeze Hiring is Due to Macroeconomic Downturn
As per Brock, as long as the macroeconomic downturn will continue, they have decided to continue to freeze hiring. It was also noted that freezing hiring will also impact backfills.
The fields that won't be affected, however, include security and compliance. According to the story by Tech Crunch, Coinbase will continue to hire a replacement for the necessary roles in these fields.
What Coinbase's Previous Severance Package Included
For candidates that have been accepted but then had their application revoked, Coinbase plans to offer them the "generous severance philosophy." The letter, however, does not elaborate on what the applicants will be receiving.
In 2020, Brain Armstrong, the CEO of Coinbase, invited certain employees to resign should they be unhappy with the company's mission which was described as "apolitical." The severance packages during that time were able to support the employees for four to six months.
Company Offered COBRA Health Coverage for Six Months
These severance packages, however, also depended on how long the employee had been working with them. The package also included health overage through COBRA for six months.
Coinbase is planning to create its own "talent hub" and the goal of this hub is to provide additional support to individuals. This includes both interview coaching as well as resume review.
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Coinbase CEO Says They Are Aware of the Volatility of the Crypto Market
Brock said that they are aware that crypto is volatile and that volatility, along with other factors in the larger economy, could test the company. They said that should the company be flexible and resilient, along with having their focus on the long term remain. They will be able to "come out stronger on the other side."
Moving towards 2022, the company initially planned to triple its staff, but after the financial results of its first-quarter, however, they have decided that in order to manage costs, they have to limit headcount instead.
The company reported a solid loss of $430 million, which, as described by Tech Crunch, is a "bad omen for a crypto exchange," especially if it depends on the trading activity within its platfrom for a majority of its revenue.
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This article is owned by Tech Times
Written by Urian B.
