(Photo by Steven Ferdman/Getty Images)
After cryptocurrency platform Coinbase announced at the beginning of June it would not only extend its hiring pause but “rescind a number of accepted offers,” a public backlash erupted on social media sites, as people who had the rug pulled out from under them shared their tales of being jobless after excitedly anticipating a new position with the top-tier crypto platform. This action may have catalyzed an uprising among disenchanted Coinbase employees, who started an online petition, leaked Thursday by crypto site Mirror, to remove top executives, including chief operating officer Emilie Choi, chief product officer Surojit Chatterjee and chief people officer LJ Brock, “in a vote of no confidence.”
The workers criticized management, stating in the petition that “the executive team has recently been making decisions that are not in the best interests of the company, its employees, and its shareholders,” and these decisions have “led to questionable results and negative value.” They cited a toxic workplace, overstaffing, the misguided prioritization of certain products and the tone-deaf recision of offers that led to unfavorable publicity and a stain on the company’s reputation. The petitioners also called out the firm for its alleged lack of communication regarding layoffs and condescension stemming from the executive suite.
The group added that the actions of senior management have “hurt multiple parties.” They claimed that leadership made “unrealistic demands” that contributed to the company's stock price plummeting, hurting shareholders and staff morale.
CEO Takes To Twitter To Push Back On The Petition
Coinbase CEO Brian Armstrong, in a recent tweet storm, said the employee rebellion is “really dumb on multiple levels. If you want to do a vote of no confidence, you should do it on me and not blame the execs.” He added, “Who do you think is running this company? I was a little offended not to be included :).”
The forthright executive laid down the gauntlet, “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!”
The embattled leader agreed that “making suggestions on how to improve the company is a great idea (in fact, we expect everyone to be a part of that);” however, it’s “our culture is to praise in public and criticize in private. If you're unhappy about something, work as part of the team to raise it along with proposed solutions (it's easy to be a critic, harder to be a part of the solution).” In no uncertain terms, Armstrong let the petitioners know that “If you can't do that and you're going to leak/rant externally then quit. Thanks!”
This isn’t the first time Armstrong came out with a bold “leave if you’re not happy” edict to employees. In October 2020, the chief executive of the Silicon Valley-based cryptocurrency exchange told his employees that he won’t stand for politics and the championing of social issues at the office. Armstrong bluntly said that he’d gladly offer severance packages to employees who aren’t comfortable with the new corporate policy of “political neutrality” in the workplace.
At the time, the chief executive wrote in a letter to employees, “Life is too short to work at a company that you aren’t excited about. Hopefully, this package helps create a win-win outcome for those who choose to opt out.” Around 60 employees took Armstrong up with his offer and left the firm.
Here’s Why This Is Happening
Coinbase’s chief people officer and other business leaders may have been influenced to make tough, belt-tightening decisions due to the bleak economic outlook. The current environment includes rapidly plunging prices of both stocks and cryptocurrencies. Runaway inflation, supply chain disruptions, large increases in the costs of goods and services and concerns over a likely upcoming recession or possible stagflation are of concern for executives at all types of companies. There is fear concerning a potential escalation of the Russian war against Ukraine. The Federal Reserve Bank stalled financial stimulus programs, changed course and announced a quantitative tightening program.
According to the company’s corporate blog post about the hiring pause and offer rescissions, “This is not a decision we make 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 People Who Had Their Offers Rescinded Said About Their Situation
On March 9, Ashutosh Ukey received an offer from Coinbase for a backend software engineer role. At the time of the offer, Ukey was deciding between this role and a computer science doctorate program at the University of Illinois Urbana-Champaign, but he ultimately decided to join the Coinbase team.
After formally accepting, Ukey received an email from the cryptocurrency exchange informing him that his offer had been rescinded. The candidate is left heartbroken after seeing his plans “fall apart,” especially as he now stands to lose his visa status in the United States because he was left jobless after the offer rescission. Ukey wrote in a LinkedIn post, “I was going to start on a STEM OPT VIS
Xingcheng Rong similarly was going to start on a STEM OPT VISA when she got her offer rescinded from Coinbase. “I was so excited to start a new page in my life: renting a house, booking flights to San Jose [and] learning fintech industry knowledge.”
Rong described in a LinkedIn post being “depressed,” as she has dedicated six years of her life to studying in the U.S. “I don't want six years of computer science study to go to waste just because an offer rescind.”
