{"id":1523139,"date":"2022-06-20T06:05:56","date_gmt":"2022-06-20T10:05:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1523139"},"modified":"2022-06-20T06:06:56","modified_gmt":"2022-06-20T10:06:56","slug":"charles-gasparino-coinbases-layoffs-show-growing-callous-side-of-cryptos-plummet","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/charles-gasparino-coinbases-layoffs-show-growing-callous-side-of-cryptos-plummet\/","title":{"rendered":"Charles Gasparino: Coinbase\u2019s Layoffs Show Growing Callous Side of Crypto\u2019s Plummet"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcharles-gasparino-coinbases-layoffs-show-growing-callous-side-of-cryptos-plummet%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1523139&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n\t\t\t\t\t<\/div>\n<\/div>\n<\/aside>\n<p>Let\u2019s start with the premise that there\u2019s never a perfect way to tell people they\u2019re being \u201cdownsized,\u201d a ridiculous euphemism for the dreaded corporate layoff.<\/p>\n<p>But there are better ways than what went down at Coinbase last week. Yes, you can break the bad news and make people feel like they\u2019re more than just numbers on a shrinking balance sheet.<\/p>\n<p>Coinbase is a crypto exchange \u2014 the country\u2019s largest. Its IPO last year showered its insiders like CEO Brian Armstrong with significant wealth.<\/p>\n<p>Just 39, Armstrong is one of those crypto billionaires (aka \u201cBros\u201d). He\u2019s voluble, cocksure of his business and not afraid to flaunt his wealth. He made big headlines just a few months ago, snapping up swanky digs in Bel Air for a cool $133 million.<\/p>\n<p>That\u2019s when Coinbase was hot, which it is now decidedly not. It\u2019s losing money, gobs of it, like other outfits that are being crushed in the crypto crash \u2014 an epic fail that has dusted more than 70% from a market that was valued at an irrational $3 trillion just last year.<\/p>\n<p>Yes, Coinbase and Armstrong are right in the middle of the meltdown and the exuberance that led to it. The company had around 2,500 employees last fall just after its IPO, which financed a platform that allows you to <a href=\"https:\/\/nypost.com\/2022\/06\/16\/elon-musk-sued-for-258-billion-over-dogecoin-pyramid-scheme\/\">trade digital coins like Dogecoin<\/a> (which began as a prank) and other weird high-flying tulips.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1237230186.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"677\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/06\/GettyImages-1237230186.jpg\" alt=\"Coinbase\" class=\"wp-image-22721042\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1237230186.jpg?quality=75&#038;strip=all&#038;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1237230186.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1237230186.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1237230186.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Coinbase fired 18% of its workforce in a manner that has been highly criticized.<\/figcaption><figcaption><span class=\"credit\">SOPA Images\/LightRocket via Gett<\/span><\/figcaption><\/figure>\n<p>As the crypto bubble grew, its equally irrational management led by Armstrong went on a massive hiring spree, adding another 2,500 people with plans to grow to 10,000.<\/p>\n<p>Coinbase was profitable through the craze until reality hit. As the crypto bubble began to lose air, it announced a first-quarter loss of more than $400 million with declines in important metrics such as active \u00adusers. Coinbase stock has now fallen about 85% from its first-day close after last year\u2019s IPO. Losses are likely to continue, analysts say.<\/p>\n<h2>Layoffs came fast<\/h2>\n<p>With all that\u2019s going on, the company obviously needed to cut costs and fast. Gone was the 10,000 hiring goal; <a href=\"https:\/\/nypost.com\/2022\/05\/18\/coinbase-slows-hiring-as-crypto-market-implodes\/\">in came a hiring freeze<\/a>, though Armstrong &#038; Co. weren\u2019t about to give up on their lofty expectations completely. They said they would honor offers to new hires \u2014 \u00adpeople who quit previous jobs but \u00adhaven\u2019t started work at Coinbase.<\/p>\n<aside class=\"single__inline-module alignright\">\n\t<\/aside>\n<p>That was before the<a href=\"https:\/\/nypost.com\/2022\/05\/11\/coinbase-warns-customers-they-may-lose-crypto-if-company-goes-bankrupt\/\"> crypto correction turned into a full-fledged panic<\/a> in recent weeks. Coinbase did what all companies do when they are fighting for survival: It <a href=\"https:\/\/nypost.com\/2022\/06\/14\/coinbase-lays-off-18-of-workers-ceo-warns-of-crypto-winter\/\">laid people off, cutting a full 18% of its workforce, or 1,100 employees<\/a>. Gone, too, was that <a href=\"https:\/\/nypost.com\/2022\/06\/03\/coinbase-rescinding-job-offers-for-new-hires-fired-even-before-i-started\/\">\u201ccommitment\u201d to the workers who received offers but haven\u2019t started<\/a>.<\/p>\n<p>The problem isn\u2019t that Coinbase had to reduce headcount; it\u2019s that it did it in a way that was even more cruel than when <a href=\"https:\/\/nypost.com\/2022\/03\/08\/better-com-workers-learned-of-layoffs-when-severance-checks-were-sent-early\/\">Better.com CEO Vishal Garg fired 900 workers<\/a> via a Zoom call last year.<\/p>\n<p>Armstrong didn\u2019t give the canned workers any decent notice, at least according to some of the now-former employees.<\/p>\n<p>People who got the ax Tuesday found out via a weirdly terse text message around 8 a.m. alerting them to an \u201cimportant update from Coinbase: please check your personal email for further details.\u201d That\u2019s right: No management phone call giving a heads up, no town hall meeting telling people to brace for pain. Not even a Zoom call.<\/p>\n<p>As employees logged into their work laptops, they read an email stating that layoffs were coming. People who were part of the 18% knew only because within minutes they were suddenly locked out of the company computer \u00adsystem.<\/p>\n<p>A bit later that morning, this time in their personal email, they received official word of the bad news.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1241318613.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"574\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/06\/GettyImages-1241318613.jpg\" alt=\"Coinbase\" class=\"wp-image-22721044\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1241318613.jpg?quality=75&#038;strip=all&#038;w=2048 2048w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1241318613.jpg?quality=75&#038;strip=all&#038;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1241318613.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/GettyImages-1241318613.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Fired Coinbase employees found out because they were locked out of their company laptops.<\/figcaption><figcaption><span class=\"credit\">dpa\/picture alliance via Getty I<\/span><\/figcaption><\/figure>\n<h2>Callous in the extreme<\/h2>\n<p>I asked p.r. people at Coinbase to provide an explanation for their apparent extreme callousness. Here\u2019s what they told me: The whole thing couldn\u2019t have been avoided. Because of the potential of theft of trade secrets, they needed to immediately lock out those on the layoff list.<\/p>\n<aside class=\"single__inline-module alignright\">\n\t<\/aside>\n<p>Armstrong apologized for the <a href=\"https:\/\/nypost.com\/2022\/06\/17\/ceo-of-crypto-firm-kraken-offers-severance-to-triggered-employees\/\">way it was handled<\/a>. There were convos with employees and team leaders later to explain post-employment options.<\/p>\n<p>Again, there\u2019s no perfect way to give someone the ax. Layoffs, unfortunately, are among the few ways companies can stay out of bankruptcy until they regain their health.<\/p>\n<p>But I\u2019ve seen the layoff drama unfold on the mean streets of Wall Street over the years in much better ways, where people actually get a call as opposed to an SMS text.<\/p>\n<p>Also, it doesn\u2019t take a crypto bro to figure out that the <a href=\"https:\/\/nypost.com\/2022\/06\/14\/crypto-crash-continues-as-bitcoin-briefly-dips-below-21k\/\">layoffs in this business are only going to continue<\/a> \u2014 much like the Internet crash of the early 2000s. There are too many crypto bros like Armstrong thinking the world was about to change trading Dogecoin.<\/p>\n<p>So a bit of advice to the bros \u2014 and I know this will date me a bit \u2014 but when layoffs do come, drop the Zoom calls, text messages and emails, and try breaking the news the old fashioned way: With a phone call or, better yet, face to face.<\/p>\n<p>Yes, Brian, you can do better.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s start with the premise that there\u2019s never a perfect way to tell people they\u2019re being \u201cdownsized,\u201d a ridiculous euphemism for the dreaded corporate<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1523139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1523139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1523139"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1523139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1523139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1523139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1523139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}