Leading crypto exchange Coinbase has apparently downsized a handful of its staff this week. As per the reports that are emerging, the layoffs have been made across the exchange’s customer support team and other sectors dealing with fraud and compliance.
While Coinbase has confirmed the news regarding the layoffs, it refused to confirm the headcount. According to sources, it has laid off more than 15 people. A source inside the exchange shared that employees are pretty upset about the layoffs and so far, the senior management is apparently handling communications poorly. This news holds significance at the moment, as the company is widely thought to be gearing to go public soon.
The Coinbase crypto exchange presently has a valuation worth $8 billion, after a giant new funding round this month. The exchange also added board member Chris Dodds recently, who is on the board at Charles Schwab.
The exchange hired Tina Bhatnagar, a former Salesforce and Twitter executive in January, to oversee customer service. As per the sources, Bhatnagar wants the customer service staff to be centralized in Coinbase’s offices. Hence, the remote support team members were laid off. Some of them were however given the chance to relocate to a Coinbase office, as reported on Yahoo Finance.
In its statement, Coinbase stated that they have learned that certain teams who are co-located are more effective, happier and efficient in their roles. It further added that from now onwards, some teams such as Fraud, Compliance and Support will only be hiring employees into Coinbase offices.
Recently, Ran Neuner, host of CNBC Africa show, Crypto Trader claimed that the Coinbase crypto exchange is all set to go public soon. Some industry experts have pointed out that staff layoffs at this juncture may not be the company’s best move if it is planning an IPO, as reported on CryptoGlobe. On the other hand, this downsizing could also be simply removing dead wood before going public.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]