Though the exchange confirmed the severance, the exact number of people shown the door has not been revealed by the company. “People here are pretty upset about it, and so far, senior leadership is handling communications poorly,” an inside source from the cryptocurrency exchange said.
The cryptocurrency exchange, which has an employee count of 550, might not feel any impact of sacking just 50 employees. But it’s being seen as an important development as Coinbase is all set to go public in near future. It has recently received a huge amount in a funding round this month, valuing the company at $8 billion.
After former Facebook employee David Marcus’ stepping down from the exchange board, the exchange has inducted Chris Dodds, who is also at the board of Charles Schwab.Most of the sacked employees used to work in remote locations.
Some of them were part of a customer service team, which was announced by the cryptocurrency exchange in a blog post that dates back to 2013, “We recently hit 300,000 users on Coinbase… it’s become evident that in order to build the best customer service for our Coinbase customers we need to scour the world to find the best. As a result, we’re building a remote customer support team to accommodate our growing user base.”
“Fast forward to 2018: Coinbase claims 25 million users and has offices in San Francisco, New York, Chicago, London, Tokyo, Portland, Ore., and Dublin. In January, Coinbase hired Tina Bhatnagar, a former Salesforce and Twitter executive, to oversee customer service. Bhatnagar, sources say, wants the customer service staff centralized in Coinbase’s offices. As a result, the remote support team members were let go, though some were offered the chance to relocate to a Coinbase office,” the report by Yahoo finance said.
“We’ve learned that certain teams who are co-located are more efficient, effective, and happier in their roles. So moving forward, some teams—including Support, Fraud, and Compliance—will only hire employees into Coinbase offices,” the cryptocurrency exchange was quoted by Yahoo Finance.
Speaking on its improvement in customer base, the exchange concluded, “Our average time to first response via email is under four hours, under three minutes on the phone, and 90% of all cases are resolved within 48 hours.” It will “continue to be open to remote employees” for jobs that are “hard to fill locally to an office”.