Coinbase is firing nearly one-fifth of its employees as inventories collapse. Cryptographic price..
Cryptocurrency exchange saves 18% of full-time jobs, According to an email sent to employees on Tuesday morning. Coinbase There are about 5,000 full-time workers, which is equivalent to reducing the number of employees by about 1,100.
Coinbase’s share fell about 5.4% on Tuesday morning.
CEO Brian Armstrong pointed out the possibility of a recession and the need to manage and increase the efficiency of Coinbase’s burning rate. He also said the company grew “too rapidly” during the bull market.
“It looks like we’re in a recession after more than a decade of economic boom,” Armstrong said in an email. The recession could lead to another cryptocurrency winter and could last for a long time. There is, “he added, adding that past cryptocurrency winters have had significant consequences. Decline in trading activity. “Economics and markets are difficult to predict, but we are always planning the worst, so we can run our business in any environment.”
Brian Armstrong, Founder and CEO of Coinbase, will attend Consensus 2019 at Hilton Midtown on May 15, 2019 in New York City.
Stephen Feldman | Getty Images
Coinbase initially said it had suspended hiring. Two weeks later, the crypto giant announced that it would extend the freeze for a “foreseeable future.” Earlier this year, Coinbase Said We planned to add 2,000 jobs for the entire product, engineering and design.
“The cost of our employees is too high to effectively manage this uncertain market,” said Armstrong. “We did our best to do this right, but in this case it is clear that we were overemployed.”
This news comes during the plunge in Coinbase stock. The stock went public through a direct listing last April, while the crypto market boom and investors sought high-growth tech stocks. Coinbase’s share has fallen 79% this year, down 85% from a record high. Meanwhile, Bitcoin has fallen to nearly $ 22,000, losing 53% of its value this year.
San Francisco-based Coinbase reported a user slump last quarter, 27% Rejected With profits from a year ago. The company earns most of its top line from transaction fees that are closely tied to its trading activities.
Employees of Coinbase Global Inc, the largest cryptocurrency exchange in the United States, are watching the list appear on April 14, 2021 at the Nasdaq Market Site Jumbotron in Times Square, New York, USA.
Shannon Stapleton | Reuters
President and Chief Operating Officer Emilie Choi called this “a very difficult decision for Coinbase,” but said it “feels like the wisest thing to do right now,” given the economic background. ..
Affected employees received notifications from their talent. In that case, the note was sent to a personal email because Coinbase blocked access to the company’s system. Given the number of employees who have access to customer information, Armstrong calls this the “only practical choice” and “makes a hasty decision that could harm your business or yourself.” I showed you how to avoid it.
Coinbase employees have access to a talent hub for finding new jobs in the industry, including Coinbase Ventures portfolio companies. Choi said Coinbase is still “doubling” in areas such as security and compliance, and may be “turning” its employees into short-term revenue drivers.
Hee-seop Choi told CNBC, “If there is a reduction in the new product area, it’s still very bullish, but it’s probably around the experimental venture area where we don’t want to invest in this part of the cycle.” In an interview at the company headquarters.
“We will continue to invest in the incredibly innovative areas of cryptography that will emerge in the long run, but we will probably do them in a more cautious way in this type of environment.”
Coinbase has joined dozens of other tech and crypto companies to put a brake on adoption.Cryptographic lender BlockFi said on Monday it was reduced 20% of employees.. Open source tracker Layoffs.fyi Estimate June alone reduced more than 5,500 startup and technology jobs.
Coinbase’s intent is “this is a one-off event,” Choi added, adding that the company’s balance sheet has $ 6 billion in cash. The company has previously lived in multiple bear markets in Crypto, also known as “Crypto Winter”.
“We power through every macro environment, every crypto winter, or whatever happens,” she said. “But in reality, we need to make adjustments when we feel that a very dynamic economic environment is working.”
High tech companies Finding Low morale and exhaustion as their stock is blamed. A petition posted on a decentralized publishing platform last week called for the removal and “distrust resolution” of several Coinbase executives, including Hee-seop Choi.
Armstrong cautioned the deleted petition and in a tweet urged employees to quit if they didn’t believe in the company.
“We always encourage employees to share feedback internally about how they operate as a company — and we have many mechanisms for them to do so. This document is from within the company. It’s very unclear if it’s a thing, “Che said. .. “But if so, the people behind it need to break the trust of the company and its colleagues by sharing this information in a way that is clearly designed to facilitate controversy rather than meaningful dialogue. I’m disappointed that I felt sex. ”
Coinbase has no plans to offer additional corporate equity subsidies or cash compensation in the price cut, Choi said. The company offers annual grants, some of which allow employees to “mitigate” and mitigate volatility of cryptocurrencies.For employees and investors, the COO likened it to: Amazon Also Tesla: Volatility long-term investment in the meantime.
“We believe that anyone who invests, whether an employee or an investor, will make a significant profit in the long run,” Choi said. “Coinbase is a long-term play. We are very confident in the long-term value of our stocks.”