Some learned days before their start date they had no job. Others say Coinbase reassured them they still had a job, which was false. “A lot of the tech companies were really over-hiring during the boom. When you hire that fast, you’re taking a huge risk.”
Like many tech workers past and present, Ashutosh Ukey, a recent Illinois University grad, was deeply disappointed when his job was cut earlier this month. Unlike tech workers in the past, Ukey has watched thousands of people evaluate how his job loss was handled.
The job cuts reverse some of the most aggressive hiring in tech. Coinbase had tripled its headcount in the past year, and sought to hire 6,000 this year. Coinbase posted on its blog about rescinding offers, but some say they learned just days before their start date that they had no job. Others say the company reassured them they still had a job, which wasn't true. Many, like Ukey, say they bypassed other opportunities months ago, and finding a job in tech is now much tougher.
“I have received an overwhelming amount of support and people reaching out on LinkedIn. I think this will definitely help me get back on my feet much faster,” Ukey said. Everything changed with the descent of “crypto winter,” as coin prices plummeted after the collapse of two “stablecoins,” which are designed to hold their value unlike more mercurial coins like bitcoin. Crypto’s decline triggered a downturn in tech stocks, and companies including Robinhood, Netflix, Lacework and many others have responded by laying off workers.
This kind of public discussion can damage a company’s image, Bersin says. “It's hard to get over a reputation like that, especially when the crypto market in general is facing a lot of questions about legitimacy.” That confusion was the tipping point in public response to tech layoffs, says Tobi Oluwole, CEO of The3Skills, a job-training startup that helps workers find new roles.