Coinbase Crypto Company Bids Farewell to 15 Staff Members Despite Recent Funding Round
Yahoo Finance recently broke the news that Coinbase has fired some members of their staff, including individuals from the customer support, compliance, and fraud teams. Coinbase has yet to release the exact number of staffers lost, but some sources say that it was at least 15 people. One unnamed source, according to Yahoo Finance, said, “People here are pretty upset about it, and so far, senior leadership is handling communications poorly.”
Even though 15 staffers out of 550 employees does not seem like a big number, the cuts are still suspicious. Coinbase only just hosted a major funding round this month, which established the company at an $8 billion valuation, and they added Chris Dodds to their board after losing David Marcus. Even without knowing the numbers, it seems that most employees that saw their last day at Coinbase were remote workers.
Some of the customer service team members had been with Coinbase since they launched that sector of the company five years ago. At the time, Coinbase created a blog post that said,
“We recently hit 300,000 users on Coinbase… it’s become evident that in order to build the best customer service for our Coinbase customers we need to scour the world to find the best. As a result, we’re building a remote customer support team to accommodate our growing user base.”
Now, in 2018, Coinbase serves 25 million users with seven different offices. Tina Bhatnagar, who formerly worked at both Salesforce and Twitter as an executive, joined the team to head up the customer service department. Since she began in January, she decided that the whole customer service team should be within the Coinbase offices, rather than working remotely, though the at-home employees were given the opportunity to relocate to one of the offices.
Coinbase released a statement to Yahoo Finance, which said,
“Our average time to first response via email is under four hours, under three minutes on the phone, and 90% of all cases are resolved within 48 hours.” Echoing Bhatnagar’s sentiment, the company said that they will “continue to be open to remote employees” for work that is “hard to fill locally to an office.”
Another possible reason for the cuts could be the result of market demand, or lack thereof. By the end of 2017, the market was in its heyday and Coinbase was seeing 50,000 new members each day. However, this year has not had the same fate, with many cryptocurrencies down by at least 60%, with Bitcoin Cash suffering from an 82% drop. Along with the current round of firings, there’s gossip that Coinbase may not be done.