Coinbase CEO announced that they would be firing employees, and reducing the team size by about 18 percent to be “mindful of costs”
Coinbase, popular cryptocurrency exchange platform, announced its decision to fire employees in order to “stay healthy during this economic downturn.” The decision was made public by Brian Armstrong, cofounder and CEO, Coinbase. “We also grew quite quickly over the past two years and have begun to operate less efficiently at our new size. It will take us some time to adjust to this new scale before growing again,” he said. The team size will be reduced by 18 percent.
“To our colleagues who are departing, I want to say thank you for giving everything to this company, and that I am sorry. I hope that as we grow again we get a chance to hire you back. We would not be where we are today without your hard work and dedication to our mission. I am incredibly grateful for everything you have done to contribute to our success,” added the Coinbase CEO.
Why Coinbase Decided to Lay-off Employees
Armstrong, in a detailed blog post, has outlined the following reasons for reducing the team size:
- The world could be entering into a recession, which would in turn lead to a crypto winter.
- Managing costs is critical in down markets that are challenging to navigate and require a different mindset.
- The company grew too quickly, and it is challenging to grow at the right pace given the scale of the company’s growth.
What Employees Fired from Coinbase are Being Offered?
The blog post went on to add that those getting laid-off would receive an email from the human resources along with the following package:
- Minimum of 14 weeks of severance plus an additional 2 weeks for every year of employment beyond 1 years.
- 4 months of COBRA health insurance in the US, and 4 months of mental health support globally.
- Access to Talent Hub, where members of Coinbase’s team will work to connect with fired employees with open positions at other firms.
What Fired Employees Have to Say About the Development?
Some Coinbase employees have taken to Twitter to state their views on the latest development. “Laid off from coinbase today. It was a good run for the last 3.5 years. It was cool to work across the org from rebrand to product. That all said, anyone looking for a sick nasty designer? Holla,” says Elliotttran.eth on Twitter.
“I just got laid off Coinbase after hitting my 90-day mark. Very bittersweet. I was on the customer experience team and have military leadership experience and was a top performer at Coinbase. I’m currently looking for remote work again. Could I ask for this to be shared?” Says another employee.