Coinbase, one of the largest cryptocurrency companies in the market has cut fifteen staff according to some sources. Earlier this year, the company hired 250 new employees to work in different areas. The information was released a few days ago by Yahoo Finance quoting unidentified sources.
Coinbase Fires Employees
It seems that the cryptocurrency bear market has affected even the most important players in the market. Coinbase is one of the largest and most respected companies in the crypto space. Yahoo Finance informs that, according to anonymous sources, the exchange has decided to fire several employees.
This is a very important contrast compared to the decision taken this year to increase the number of workers.
The report quoted by Yahoo Finance reads as follows:
“We’ve learned that certain terms 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.”
Until now, Coinbase did not officially confirm the number of employees fired. However, sources at the company say that the number could be larger than fifteen. One of the sources said that people are ‘pretty upset’ about this issue. Additionally, it informs that the leadership is not handling communications as they should.
At the end of 2017, Coinbase had some problems with services offered. The market was at its highest point and the number of users requesting support and using the platform was growing day after day. In order to solve this issues and improve customer support, the exchange decided to hire new employees. And indeed, Coinbase decided to open a new office in Portland, specifically created for customer support.
In June, the company explained that they were going to add 100 new jobs this year alone. However, it seems that the platform has not seen market conditions allow for that growth.
As of September 2018, the company had 500 employees. 250 of them started to work during this year. If the numbers provided are accurate, Coinbase reduced 3% the number of employees it had the last month.
One of the reasons to fire these employees could be related to the fact that the market is in a bear trend. Additionally, trading volumes have reached new lows and trading platforms have lost speculative traders. This can be translated in reduced earnings for the company.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.