Coinbase Offers Jobs, Takes Them Back

Coinbase has left would-be employees biting the dust. The company opted to rescind job offers that for some, could have been the lifeline to build a career in the great big world of tech.

The cryptocurrency giant’s latest move could come back to haunt it. There certainly would be a flurry of PR activity to save face, but the move may have been necessary in light of inevitable overbearing costs in a bear market.

Three members of this unfortunate group of recruitment said they did not see this coming. In effect, the company’s deviation from what’s far more than a gentleman’s agreement blindsided these trusting individuals.

Coinbase is a respectable brand in the crypto marketplace. Indeed, there’s plenty of reputation to protect when you’re the most stable brand in the business. It goes without saying that Coinbase execs would have weighed every possible backlash that this action could bring before certain. In terms of the company workplace culture, more people would rather be at Coinbase than at Meta, Roblox, Snap, or some other notable brands in tech. Some of the recruits had rejected offers elsewhere to be at Coinbase. It appears they might have to eat humble pie now and go back to their vomit!

A few of the would-be recruits had the stars aligning in their favor. One software engineer had his Coinbase offer in hand as of mid-May. He was preparing to leave when the reversal notice hit his inbox. It wasn’t April Fool’s Day and this was no joke. He must now continue at his current job. Many of his peers were less fortunate.

Some probably pulled the trigger too quickly at their present workplace. One college graduate was to resume in September, but he has to quickly find another job. The problem? Most companies are either not hiring at the moment or really have no vacant roles.

What Happened inside Coinbase?

Early in 2022, Coinbase announced its intentions to grow its payroll to 200 percent. This is probably likely the reason why this reversal seems rather awkward. Was it a snap decision based on how ugly the company’s numbers have become?

One recruit suggests that several hundred people could have been in the recruitment and onboarding pipeline this week. Yet, Chief People Officer L.J. Brock announced the company’s plan to rescind accepted offers. It did so without a hint of hesitation.

Coinbase’s Hiring Reversal Pulls the plug on Big Dreams

This latest episode may have been some time in the making, however. Two weeks ago, Coinbase said it would decelerate hiring. Things simmered a little until Brock’s unexpected announcement and the sad e-mails that followed.

One fresh graduate had interviewed in November and per a copy of email they received from Brock, their reward would be a one-month severance pay.

Some users of a Blind jobs posting forum were to resume on June 6, only four days after Brock’s blog post

However, the markets haven’t responded as adversely to the hiring reversals development at Coinbase. While most tech stocks fell throughout Friday, the crypto giant dipped 9 percent to trade around $67.

It’s pertinent to also note the 74 percent year-to-date plunge of Coinbase’s share price as tech stocks and digital currency prices continue to nosedive.

It might make economic sense to invest less in its workforce. In the words of Chief Operating Officer Emilie Choi, current market conditions have made it necessary to ramp down on hiring and reconsider who the company really needs to achieve its most significant business goals.

Companies need to convince investors they can remain steady in any recession. Rising inflation and interest rate hikes from the Federal Reserve may have hurt profitability across companies, causing indexes such as the Nasdaq Composite to lose much of their value since the start of 2022.

Is it possible that Coinbase makes new offers to their once would-be recruits? Would this inspire a tsunami across the tech industry and beyond? The questions remain, but we need to keep in mind that an insolvent company cannot hire anyone.

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