{"id":243104,"date":"2022-06-14T16:39:51","date_gmt":"2022-06-14T15:39:51","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=243104"},"modified":"2022-06-14T16:39:51","modified_gmt":"2022-06-14T15:39:51","slug":"coinbase-to-layoff-1100-employees-after-petition-against-executives","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/coinbase-to-layoff-1100-employees-after-petition-against-executives\/","title":{"rendered":"Coinbase to layoff 1,100 employees after petition against executives"},"content":{"rendered":"

Coinbase CEO Brian Armstrong<\/a> on June 13 announced the decision to cut the company's workforce by 18%, which according to The Wall Street Journal<\/a><\/em>, translates to around 1,100 employees.<\/p>\n

Armstrong gives his reasons for the layoff<\/h2>\n

Armstrong<\/a> said in a blog post that he's been in dialogue with company execs and the board about recent market developments over the past month. These discussions led him to conclude that changes should be made to safeguard the company.<\/p>\n

Specifically, he spoke about the macroeconomic landscape and the onset of a recession, which could, in his opinion, last “for an extended period,” the importance of staying lean by cutting costs during these times, and growing too quickly, which led to a bout of overhiring.<\/p>\n

“While we tried our best to get this just right, in this case it is now clear to me that we over-hired.”<\/p><\/blockquote>\n

Affected staff will receive 14 weeks of severance pay, plus an additional two weeks for each year of employment past the first year, four months of health insurance and mental health support, and help to find a role at other firms.<\/p>\n

He said accountability for this decision rests entirely with him.<\/p>\n

Employee morale at all-time low<\/h2>\n

Even before the announcement, employee morale at Coinbase was already rock bottom, according to the WSJ<\/em><\/a>.<\/p>\n

The WSJ reported on June 10 that unrest over the company's poor performance had led to an employee petition calling for the ousting of senior figures within the firm.<\/p>\n

Several top execs are named in the petition, including Chief Operating Officier Emilie Choi, Chief Product Officer Surojit Chatterjee, and Chief People Officer L.J Brock.<\/p>\n

In response to the now-deleted petition, Armstrong<\/a> blasted the petition as “really dumb on multiple levels.” And that he<\/a>, not the executives named, should be the subject of scrutiny over the firm's poor performance.<\/p>\n

“First of all, if you want to do a vote of no confidence, you should do it on me and not blame the execs. Who do you think is running this company?”<\/p><\/blockquote>\n

Furthermore, the company co-founder<\/a> said employees, who lack confidence in Coinbase, should quit and find work with a company they believe in.<\/p>\n

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3\/ Second, if you have no confidence in the execs or CEO of a company then why are you working at that company? Quit and find a company to work at that you believe in!<\/p>\n

— Brian Armstrong – barmstrong.eth (@brian_armstrong) June 10, 2022<\/a><\/p><\/blockquote>\n