Coinbase Rescinds Job Offers And Enacts Hiring Freeze

The outlook of the economy has swiftly shifted. The United States has lurched from being blindly optimistic about growth, skyrocketing stock, cryptocurrency and NFT prices toward a deeply negative sentiment. Jamie Dimon, the serious-minded, well-respected CEO of the premier investment bank JPMorgan, sternly warned investors that an economic “hurricane” is on its way.

Coinbase, the large cryptocurrency platform, announced on its corporate blog, “In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers.”

Why Is Coinbase Rescinding Offers And Pausing On Hiring?

L.J. Brock, chief people officer at Coinbase who authored the post, added a caveat: there will be some exceptions “for roles that are necessary to meet the high standards we set for security and compliance, or to support other mission-critical work. We will always prioritize the safety and security of our customers’ funds.”

Brock and Coinbase may have been influenced to make these decisions due to the bleak economic outlook, falling prices of both stocks and cryptocurrencies, out-of-control inflation, supply chain disruptions, a potential escalation of the Russian war against Ukraine and the Federal Reserve Bank halting financial stimulus programs previously instituted at the onset of the virus outbreak to keep the economy and job market alive. Now, the Fed has dramatically changed course and announced a quantitative tightening program. This measure is akin to taking away the punchbowl at the party.

According to the blog post, although “this is not a decision [it makes] lightly,” Coinbase believes that by taking “more stringent measures to slow [its] headcount growth” and “adapting quickly and acting now,” the hiring freezes and reversing job offers will save money and serve as part of a larger strategy to “successfully navigate this macro environment and emerge even stronger, enabling further healthy growth and innovation.”

What Will Happen To The People Who Have Their Offers Revoked?

The company said, “This decision is not a reflection on the highly talented people we had extended job offers to. We will apply our generous severance philosophy to offset the financial impact of this decision.”

Coinbase said it will help those who had their offers overturned. There will be a talent hub for them to receive job placement support, including résumé review, interview coaching and access to its network of contacts.

This is helpful; however, there will be challenges for those who had their offers rescinded. The rejection of offers for “people who have not started yet” could be problematic. It could lead to serious consequences for the people who won’t start working at the company.

Interviewing For A Job After Losing An Offer

Over the last couple of months, there has been a steady drumbeat of tech companies announcing hiring freezes and downsizings. When a large number of businesses in your sector are holding off on hiring and letting go of people, it’s not a hospitable environment for job seekers, especially an individual who is out of work.

The impacted people will feel as if they’ve been punched in the face. Their world has been turned upside down. They’ve gone from feeling excited and thrilled to join such a marquee company to feeling that they are left out in the cold. Although the company said it’s not personal, the person will always wonder if they did something wrong or maybe a boss or co-worker gave an unflattering reference.

There is an embarrassment factor. The person left their prior role and now probably feels like it was a huge mistake. There is an old adage in recruiting, “Last one hired is the first one fired.”

The impacted individuals could ask their former employers if they could return. It sounds easy, but may make the person feel as if they’re groveling. Some managers would be open-minded, especially if the person was well-regarded and they didn’t find a replacement yet. Other bosses may be resentful that the person left and burned their bridges.

When the individual sets forth on the job hunt, they’ll be asked why they are searching. There will be an awkward and uncomfortable conversation with the interviewer. The person will need to explain the story, which is not an easy thing to do. Emotions take over and it will be hard to keep their composure.

As time goes on and people forget about the rescission of offers, hiring managers may believe other factors caused them not to be onboarded at Coinbase. Human resources and managers want certainty, and if there’s even a smidge of doubt, it’s easy for them to take a pass on the candidate and move on to other applicants that don’t have a story to tell.

Looking Forward To Better Times

Brock concluded, “We always knew crypto would be volatile, but that volatility alongside larger economic factors may test the company, and us personally, in new ways. If we’re flexible and resilient and remain focused on the long term, Coinbase will come out stronger on the other side.”