The cryptocurrency continues a downward trend, which disrupts Coinbase as it pulls back on its hiring efforts.
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LONDON, ENGLAND - NOVEMBER 09: In this photo illustration, a flipped version of the Coinbase logo is reflected in a mobile phone screen on November 09, 2021 in London, England. The cryptocurrency exchange platform is to release its quarterly earnings today
L.J. Brock, the people officer of Coinbase announced that they are pausing hiring new employees and rescinding several job offers already accepted by prospective workers, citing "current market conditions and ongoing business prioritization efforts," via a memo posted on their website.
It is unclear how many job offers Coinbase rescinded, but according to Brock, the affected individuals will be given "generous severance policy" and will gain access to a talent hub with various career resources.
It was only in mid-May when Coinbase began its slow hiring to help the company be in the best position to succeed during and after the current downturn.
Beefing up its staff is part of its plan to hire 2,000 employees in 2022 due to the many product opportunities ahead for the future of Web3. In the first quarter of 2022 alone, the company hired 1,218 employees, which brings them all to 4,948.
However, the move is frozen completely and will also impact backfills.
Also Read: #TechCEO: Introducing Coinbase CEO Brian Armstrong and His Contribution to Crypto Space
A Series of Unfortunate Events?
The cryptocurrency downward trend is dragging down immovable coins that are pegged to a fiat currency or commodity.
Besides that, the company is also struggling with the lackluster response to the social NFT marketplace that was launched in May. Data showed that 4,132 people purchased an NFT on the platform within 19 days of its launch with a gross sales of $875,000 or an average of $46,000 per day.
Furthermore, with NFT sales declining as a whole, it isn't helping Coinbase at all during this time.
The Push and Pull Puts Prospective Employees At Risk
The changes at Coinbase left prospective employees struggling. Two individuals that were set to be hired by the company may lose their Optional Practical Training (OPT) Visa because of the rescinded offer.
There were others that said they got an email reassuring them that they won't lose their newly-accepted job because of the hiring slowdown, only to receive an impersonal email notifying them of a rescinded offer shortly after that.
The initial email reads, "You may have seen this week that Coinbase posted an external blog post announcing our intentions to slow down hiring so that we can reprioritize our hiring needs against our highest-priority business goals.
It continued," First and foremost, I wanted to communicate that we are still extremely excited about having you join Coinbase and we will not be rescinding the offers of any employees who have already signed or have received an offer from us."
The hiring freeze only indicates a chilly condition for the cryptocurrency market. Coinbase isn't the only company that is laying off employees. Rain, a huge crypto exchange based in the Middle East also laid off dozens of employees.
Related Article: Coinbase 'Crypto Hub' to Hire Hundreds of Workers in India with $1,000 Hiring Bonus
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Written by April Fowell
