Coinbase cuts workforce after $8 billion valuation round: upcoming IPO’s growing pains?

Reports have emerged that Coinbase is cutting its workforce ahead of its IPO. This comes after the valuation for the company was pegged at a whopping $8 billion. The move was reportedly in order to centralize their customer support, compliance and fraud departments.

Tina Bhatnagar, Coinbase’s new hire for management of customer service is said to be the driving force behind this round of layoffs. According to sources, the executive wanted the customer service staff to be centralized in Coinbase’s offices. However, this does not seem to be going swimmingly, as a source stated to Yahoo Finance:

“People here are pretty upset about it, and so far senior leadership is handling communications poorly.”

When contacted about the layoffs, Coinbase declined to give a head count but confirmed the event. Reportedly, around 15 people were cut from the company. Most of the cuts were in the decentralized remote support teams that were utilized by Coinbase to provide customer support. However, this seems to be working in favor of the company, as they stated to Yahoo Finance:

“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.”

Moreover, their first response rates have reportedly improved. This includes 4 hours to reply via email, under 3 minutes on telephonic conversations and resolution of 90% of all cases within 48 hours. They did mention that they would continue to be open to remote employees for jobs that are “hard to fill locally”.

The company seems to be readying itself for the scalability and efficiency required for the influx of customers that its upcoming IPO could bring in. However, the cryptocurrency community seems to treat this as a sign of the exchange failing to keep itself afloat.

User ElmerFudster said:

“Coinbase this is what happens when you put narrow ideology over making profits. Uphold has busily taken what could have been loyal customers if you had added XRP. Karma is a MF, Coinbase.”

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