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Coinbase to layoff 1,100 employees after petition against executives

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Coinbase CEO Brian Armstrong On June 13, announced the decision to reduce the company’s staff by 18%, which, according to Wall Street Magazinewhich is about 1100 employees.

Armstrong called the reasons for the dismissal

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Armstrong said in a blog post that he had been in dialogue with company executives and the board of directors about recent market developments over the past month. These discussions led him to the conclusion that changes needed to be made to protect the company.

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In particular, he talked about the macroeconomic situation and the onset of a recession that he believes could last a “long period”, the importance of maintaining savings by cutting spending during this time, and growing too fast, leading to a bout of over-hiring.

“While we tried our best to get it right, in this case it is now clear to me that we have hired too many employees.”

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Affected employees will receive 14 weeks of severance pay plus an additional two weeks for each year of service after the first year, four months of health insurance and psychological support, and assistance in finding employment with other firms.

According to him, the responsibility for this decision lies entirely with him.

Employee morale at an all-time low

Even before the announcement, Coinbase employee morale was at the bottom, according to Coinbase. WSJ.

On June 10, the WSJ reported that unrest over the company’s poor performance has led to an employee petition calling for the firing of high-profile individuals at the firm.

Several top executives were named in the petition, including COO Emily Choi, Chief Product Officer Surojit Chatterjee and Chief HR Officer L. J. Brock.

In response to the now-deleted petition, Armstrong criticized the petition as “really stupid on several levels”. And this herather than named executives, should be the subject of close scrutiny due to the poor performance of the firm.

“Firstly, if you want to pass a vote of no confidence, you should do it to me, and not blame the authorities. Who do you think runs this company?”

Besides, company co-founder said that employees who do not trust Coinbase should quit and find a job with a company they believe in.

Fortunes on Coinbase take a plunge

In April 2021, Coinbase debuted on the Nasdaq, marking a landmark moment for cryptocurrencies. Its share price closed on the first day of trading at $328.28, giving the company its initial market valuation. $86 billion (completely divorced).

Fourteen months later, and with the undeniable arrival of the crypto winter, cracks began to appear within the company.

In May, the company released 1 sq. 2022 the results show a 27% year-over-year decline in revenue and a net loss of $430 million. In addition, the number of retail transactional users per month decreased to 9.2 million from 11.4 million in the previous quarter.

In addition, the report included a bankruptcy disclosure statement, which led to asset transfer warnings.

Last week, like other crypto firms in the refrigeration market, Coinbase announced a suspension of new hires, including the cancellation of accepted job offers.

The end result of the unrest was a gradual decline in the value of the company’s shares. COIN closed on Monday at $57.44, 83% below its initial closing price.

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