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Coinbase announces it will slow down hiring
- dominotw 4y agowhy do they post this public blogpost. Companies change their hiring patterns all the time. I don't understand why they need to make a blog post about it.
- otterley 4y agoPossibly because they think investors need to know about it - since they are a publicly-traded company - and want to avoid running afoul of SEC regulations. (Note: I am not a securities lawyer; this is admittedly a guess.)
- thebean11 4y agoA blog post to not run afoul of SEC regulations? I don't think so..they could easily bring this up at earnings.
- otterley 4y agoI’m not a securities lawyer but I can imagine that some material information might need to be disclosed immediately. I’d love a more knowledgeable person to chime in.
- benmanns 4y agoCoinbase did make an SEC filing copy of the blog post: https://www.sec.gov/Archives/edgar/data/0001679788/000110465922061625/0001104659-22-061625-index.htm https://www.sec.gov/Archives/edgar/data/0001679788/000110465... > On May 16, 2022, Coinbase Global, Inc. (“Coinbase” or the “Company”) issued a blog post (the “Blog Post”) relating to its hiring plans. In connection with the Blog Post, Coinbase affirmed its expense outlook for the second quarter of 2022 and full year 2022 that the Company provided on May 10, 2022 in a letter to its shareholders announcing its financial results for the quarter ended March 31, 2022. A copy of the Blog Post is furnished as Exhibit 99.1 to this Current Report on Form 8-K. > Coinbase announces material information to its investors using filings with the Securities and Exchange Commission, the Company’s website at www.coinbase.com and blog.coinbase.com, as well as press releases, public conference calls, public webcasts, its Twitter feed (@coinbase), its Facebook page, its LinkedIn page, its YouTube channel, and Brian Armstrong’s Twitter feed (@brian_armstrong). Therefore, Coinbase encourages investors, the media and others interested in the Company to review the information it makes public in these locations, as such information could be deemed to be material information. > The information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. So whether or not they were required to communicate the slowdown, they did at least consider the post to be material information that needed to be communicated with investors.
- ectospheno 4y agoIf someone employed there wants to trade then they have to announce or risk insider trading. When the trade can’t wait until the usual information release then you will see sudden announcements like this.
- vmception 4y agoNice, they covered their ass
- CydeWeys 4y agoEarnings only happen quarterly. There's lots of events that need to be communicated more urgently than that. And there's no way you could keep a lid on something like this for up to potentially 90 days. People (internally and externally) are going to notice that no one is being hired there anymore.
- CydeWeys 4y agoAnd it's worth pointing out that large companies are constantly posting disclosures, sometimes as frequently as daily. Here's one example (Google): https://sec.report/Ticker/GOOG https://sec.report/Ticker/GOOG The bar for disclosure is quite low, and is not dependent on quarterly cycles.
- mike10921 4y agoThe point is for outside investors to ensure them that money is well spent and the company is on path to success. Common for public companies to do this.
- hef19898 4y agoFor those depending on investor money to survive, aka the cash-flow-after-funding crowd. For others not so much, those only communicate head count reductions most of the time.
- next_xibalba 4y agoCoinbase has seen their stock price plummet by 80% in the last 6 months. For comparison, the NASDAQ is down 25% and the Russell 3000 is down 16% over that same period. In other words, Coinbase has performed much worse than most other equities. This decline in stock price was exacerbated by the recent crash in crypto prices and a large net income loss in Coinbase's most recent quarterly results. All of this to say, investors' confidence in Coinbase has been absolutely rattled. An announcement of a hiring slowdown/freeze or layoffs could accelerate the Coinbase sell off if it is misinterpreted as evidence of a meltdown of the business. So Coinbase is trying to get out in front of and own the message around their change in hiring patterns. "We are acting as good stewards of your investment, and no reason to panic." This post surely addresses many stakeholder groups, but investors seem to be the primary constituency that is being reassured.
- MomoXenosaga 4y agoIf crypto is mostly a "get rich quick" scheme and shortcut to riches plummeting prices will cool down the hype fast. There's no such thing as a money printing machine that doesn't backfire.
- duped 4y agoIt's not a get rich quick scheme, it's a Ponzi scheme. o Once you can't convince new suckers to buy in the system collapses and the one left holding the bag loses everything.
- maerF0x0 4y agoif that's a ponzi scheme then so is the USD.
- burntoutfire 4y agoThe USD has intrinsic value - the US government insists on receiveing its taxes in USD, and only in USD. This alone creates trillions of dollars per year of real demand for USD. Crypto doesn't have anything like it.
- Vladimof 4y agoI think they are trying to get the price of crypto to drop.... to be able to buy back .... I dropped Coinbase long ago, they manipulate the market too much (I.E.: You can't sell if price drastically go up, etc)
- bdcravens 4y agoThey know it'll leak, so being public minimizes damage.
- nytesky 4y agoFacebook, Coinbase, all these companies publicly announcing hiring freezes. There should be plenty of other tech companies and non tech hiring, but will this soften wages?
- ripper1138 4y agoAll those crazy 500k+ offers going around over the last 6 months are already softer thanks to RSU value dropping. Some people are already getting 30% less then they thought they were getting (at least for now).
- ldjkfkdsjnv 4y agoThe big secret is those companies knew a sell off was imminent and that their stock was overvalued. The 500k offers were really 350k offers in disguise.
- jstx1 4y agoI really doubt this. Why do you think they knew a sell off was imminent?
- cwmoreiras 4y agoBecause they have financial analysts working for them.
- somebodythere 4y agoIf hedge funds can't reliably predict a market crash, why do you think a team of accountants at an Amazon office can? And if they could, why don't they exit their core business and get into trading stocks?
- wbsss4412 4y agoThe difference is between a reliable prediction and a precise and timely prediction.
- superkitty 4y agoLooks like pretty much all high tech company's slowing the hiring. That usually indicates that in few months it would not be surprised to see stating the blood bath in tech companies.
- ushakov 4y agoblood bath is already happening interest rates raising, layoffs, entry level role hiring halt, etc. i’m launching a startup this year fearing it would end up underfunded
- daxfohl 4y agoI wonder if Microsoft will reconsider their pay bumps.
- pavlov 4y agoI think it's the opposite thinking at Microsoft: they see here an opportunity to change their reputation as "the forgotten FAANG", not even in the acronym because it doesn't pay as well as the SV companies.
- mc32 4y agoThe MAAGMATENN ms, aapl, adobe, goog, meta, amzn, twttr, eBay, netflx, nvidia. Ok that’s just forcing it.
- mr90210 4y agoAdobe? Yeah that’s forcing for sure.
- deleted 4y ago[deleted]
- killerdhmo 4y agoLook at the five year stock growth, dark horse among the tech companies for sure
- okokwhatever 4y agoHell is freezing
- etaioinshrdlu 4y agoI heard rumors that they are actually planning layoffs.
- ripper1138 4y agoThe amount of hiring in the past 12 months is insane.
- jstx1 4y ago> Heading into this year, we planned to triple the size of the company. I wonder what "slow down" means exactly in this context. Complete hiring freeze? 10-50% growth? Even if there was no market downturn, how were they even planning to integrate 3x the people within the company in such a short period of time.
- deleted 4y ago[deleted]
- avrionov 4y agoCoinbase revenue increased 514.76% from 2020 to 2021. They were also profitable in 2021. Adding 3x people probably made sense, if they think that that revenue will continue to increase. https://www.google.com/finance/quote/COIN:NASDAQ https://www.google.com/finance/quote/COIN:NASDAQ
- rvnx 4y agoSomething maybe more worrying is that you can see in the financial results of Coinbase that they invested into BTC themselves, and there is threshold where they would lose funds and likely have to liquidate BTC aggressively :/ (it's public)
- seydor 4y agoBinance has ~10 times the trading volume with the same number of employees
- dmd 4y ago[flagged]
- searchableguy 4y agoThat's a swastika symbol which is common in Asia (where binance and its founder is from). The nazi symbol is tilted, has an opposite image to it and no dots. Gas is used for token in that context and is also a common word in crypto referring to transaction fees. I'm surprised by the connections made.
- Mo3 4y agoI too have difficulty understanding the connection without ulterior bias and lack of knowledge needing to be present. Taking a single look at the second link referenced, it is glaringly obvious that the tokens' abbreviation is GAS. The swastika is a completely different symbol and unrelated to the Hakenkreuz. The swastika has never directly been referenced by the Nazis, they projected their own values into the form of the symbol.
- chimeracoder 4y ago> The swastika is a completely different symbol and unrelated to the Hakenkreuz. The swastika has never been used or considered by the Nazis. This is not true. "Hakenkreuz" is literally just a German word for swastika, etymologically a descriptive one in German instead of a Sanskrit loan word. Contrary to popular misconception, there is no inherent difference between a swastika as used in religious imagery and a swastika as used by the Nazis. The difference is context.
- Mo3 4y agoHakenkreuz is not “literally the name for a swastika”. Hakenkreuz literally translates to hooked cross. It has nothing to do with a Swastika which is a completely unrelated symbol that has been around for a long time. The swastika is also visually different (the Hakenkreuz is angled 45°, we could argue about the form itself, but on the other hand its not a very deliberate geometric structure) Furthermore, “Swastika” has not once been mentioned or used by the Nazis. Hitler in Mein Kampf referred to it as a hooked cross, and while they probably knew about the Swastika itself, assigning a completely new symbolic meaning to a symbol results in a new, unrelated symbol. In fact, as far as my current knowledge goes, the in the English speaking world wide-spread mistranslation of "Hakenkreuz" to "swastika" was a deliberate mistranslation by a British Christian priest that has propagated into mainstream “knowledge”.
- linuxftw 4y agoPreviously they had announced expanding their NFT offerings. Hopefully the executives realized that was a fruitless endeavor.
- agentultra 4y agoWhy not just shut down now and give everyone a nice package instead of dragging it out and laying folks off with nothing/the-minimum-legally-required? Has anyone thought of doing that with a business or is the default instinct to fight it out until the bitter end?
- deleted 4y ago[deleted]
- oxfordmale 4y agoThis is happening in tech companies across the board. From my network I understand many companies have either stopped hiring or have strongly reduced hiring.
- devoutsalsa 4y agoI can’t really say. I’m still getting hammered with inquiries.
- oxfordmale 4y agoI am wondering if some of these inquiries are from slightly shady recruitment agencies. I know people have still been approached for the positions my company has pulled. The rut mostly seems to affect the tech sector. There are plenty of sectors that are fine.
- notch656a 4y agoI would go far to say as the majority of recruiter inquiries I've received in my life have been for pulled positions, used as bait to start engagement with the recruiter.
- techsin101 4y agoso did meta, netflix, twitter, uber, robinhood, carvana, better, peloton, upstart...