The blowout was especially big for Coinbase’s customer service team. New employees often felt that they did not have enough to do. “For a while, I was getting maybe four phone calls a day,” said fired customer service worker David Visini. “Was dead, dead, dead.”
Ms. Choi, the chief operating officer, acknowledged that Coinbase had “rehired” during the pandemic and said it was difficult to integrate new employees into the remote environment.
“I don’t know that we had exactly the right set of tools to set them up for success,” she said.
In May, the cryptocurrency market crashed, causing Coinbase’s stock price to drop by about 60 percent. Coinbase’s first-quarter revenue fell 27 percent year-over-year to $1.17 billion. USD, even if its expenses more than doubled to 1.72 billion.
Its competitors seem to be doing better. FTX CEO Sam Bankman-Fried said in an email that its financial results were “similar” to last year, when the company earned about $350 million. Binance, the world’s largest exchange, refused to disclose earnings data. But in June, company founder and CEO Changpeng Zhao, announced that he is hiring for 2,000 open positions.
That month, Coinbase employees circulated a petition demanding the removal of several top executives. Mr. Armstrong continued to react aggressively Twitter, urging disgruntled employees to quit. But he and other executives struck a more conciliatory note during the staff meeting, saying employees should keep believing in the cryptocurrency and make the company stronger, according to two people who attended.
A few days later, the company laid off 1,100 workers.