Coinbase(NASDAQ:COIN) announced plans tofurther extend its hiring freezeand rescind job offers. One element of this is receiving particular scrutiny: A leaked email suggests the company lied to prospective employees about their job security.
Coinbase is one of the largest crypto exchanges in the U.S. It offers over 170 coins and tokens on its platform, and itprocesses billions of dollars in transactionseach day. It’s also the only crypto exchange trading on a mainstream stock exchange.
Unfortunately for Coinbase, the market has been in disarray for much of the year. Investors are getting spooked out of the market as a result of the volatility, which in turn is hurting companies that rely on high transaction volumes. Coinbase’s first-quarter earnings report shows that transaction revenue wasdown 56%from Q4.
The market downturn is causing Coinbase, as well asother companies likeGemini, to start cutting down on costs. In Coinbase’s case, it is freezing all new hires. But a series of leaked emails show that the company was not truthful to its prospective employees in the lead-up to a series of rescissions.
Coinbase Under Fire Thanks to Leaked Emails
InvestorPlacereceived the leaked emails fromBlind, a platform dedicated to employee leaks.An email sent the weekof Coinbase’sfirst hiring freeze announcementpromises that the company would not be rescinding any offers. “We are still extremely excited about having you join Coinbase and we will not be rescinding the offers of any employees who have already signed or have received an offer from us,” the email reads.
It continues by reminding these hires of the company’s healthy balance sheet — in Q1, Coinbase reported $6.1 billion in cash and equivalents.
News today shows that Coinbase iswalking back on this assurance. The company is now rescinding its job offers in order to cut costs, citing market conditions.SFGATEreported that additional leaked emails appear to offer incoming employees some sort of severance package as well as access to a talent hub to help find different jobs.
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