Coinbase’s laying off staffs could be related to decreasing demand

28 Oct, 2018
by Fifi Arisandi
News
Coinbase’s laying off staffs could be related to decreasing demand

Coinbase is reported to have laid off at least 15 staffs from Support, Fraud, and Compliance departments. 

The biggest cryptocurrency exchange in the US, Coinbase is reported to have laid off their existing staffs, after recruiting 250 new hires within this year alone.

When Yahoo Finance reached out to the company for a confirmation, they confirmed the layoff, but refused to mention the head count.

However, an inside source said the number of staffs being cut are more than 15 people. Furthermore, the anonymous source said, “People here are pretty upset about it, and so far, senior leadership is handling communications poorly.”

While laying off employees is a common thing for a company, with the IPO rumor hovering, people may become more curious to know such information.

The staffs being let go are said to come from the customer support, compliance, and fraud departments, particularly the remote workers. In their official statement, the company said, “We’ve learned that certain teams who are co-located are more efficient, effective, and happier in their roles. So moving forward, some teams—including Support, Fraud, and Compliance—will only hire employees into Coinbase offices.”

That being said, a deeper analysis on this “common” occurrence could related it to the market demand. The company decided to hire remote workers for the aforementioned departments last year when the cryptocurrency market soared high. During that time, Coinbase claimed to have 50,000 new customers signing up every single day, which led to the decision to have a decentralized team.

These days, it seems like the “demand” is not as high as how it used to be as cryptocurrency prices see red more often than green. The rumor of Coinbase’s laying off their staffs actually has been heard within the crypto community for some time.

Added with the company’s plan to conduct an IPO, Coinbase is having the "obligation" to evolve, and organizational changes are definitely inevitable.

Read more: New report reveals over 25% of investors suffered large losses in September

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Read more about: Coinbase

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