Coinbase has un-hired some of its new recruits and is suspending further job offers for the foreseeable future to navigate bear market conditions better and emerge stronger.
The cancellation was informed by sending an e-mail to the new hires, signed by Coinbase's Chief People Officer, L.J. The e-mail stated that the company changed its hiring plans due to changing market conditions and that the recipient will no longer be starting their new position at Coinbase.
Coinbase created a talent hub to help the un-hired look for a new position elsewhere to compensate for the inconvenience.
One recipient criticized Coinbase for being unprofessional. He told Insider:
How many recruits received the rescinding e-mail.
The un-hiring spree attracted attention on Twitter as well. Angel investor Jason Choi stepped up to help the affected ones. He tweeted:
Is Coinbase doing well?
In May 2022, Coinbase's first quarter of 2022 earnings report was released, which included bankruptcy wording that caused the community.
The document said that users' funds could be considered the property of a bankrupt estate. If Coinbase goes bankrupt, these funds would be subject to bankruptcy proceedings.
In the first quarter of 2022, a 40% drop was recorded in Coinbase's trading volume. The question if Coinbase is going bankrupt or not is going to be bankrupt due to the dropping volume and bankruptcy wording.
Brian Armstrong, the CEO of Coinbase, spoke about those concerns a few days later. He dismissed the concerns about bankruptcy and said:
He said that Coinbase will keep building regardless of market direction.
Other signs may show that Coinbase is having problems. A few days after Armstrong's speech, Coinbase s Chief Product Officer Surojit Chatterjee said the company is increasing its focus on critical revenue-generating products.
According to Coinbase's recent announcement that headcount is one of the ways for the company to manage its costs. The un-hiring decision was prudent given current market conditions.
After another platform that is known as Gemini, Coinbase has announced its decision to un-hire and suspend further hiring.
On June 2, the founders of Gemini sent a company memo to employees to notify them that 10% of its staff will be fired in order to survive the winter.
Gemini stated that the falling prices, geopolitical turmoil and stagnating development affected everyone in the industry, including Gemini, for the same reasons as Coinbase.