diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
index 0e199c9011..cc5afa29ab 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
@@ -34,8 +34,3 @@ EMERGE_DEFAULT_OPTS="--oneshot"
 
 # Since our portage comes from version control, we redirect distfiles.
 DISTDIR="/var/lib/portage/distfiles-target"
-
-# Username and home directory of the shared user.
-SHARED_USER_NAME="core"
-SHARED_USER_HOME="/home/core"
-SHARED_USER_PASSWD_FILE="/etc/shared_user_passwd.txt"
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r15.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r16.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r15.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.0-r16.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
index 776abc6f65..55bfc18dfc 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
@@ -163,13 +163,6 @@ src_install() {
 		sed -i -e '/\/etc\/issue/d' \
 			"${D}"/usr/lib/tmpfiles.d/baselayout-etc.conf || die
 
-		# Set custom password for core user
-		if [[ -r "${SHARED_USER_PASSWD_FILE}" ]]; then
-			echo "core:$(<${SHARED_USER_PASSWD_FILE}):15887:0:::::" \
-				> "${D}"/etc/shadow || die
-			chmod 640 "${D}"/etc/shadow || die
-		fi
-
 		# Initialize /etc/passwd, group, and friends on boot.
 		bash "scripts/coreos-tmpfiles" "${D}" || die
 		dosbin "scripts/coreos-tmpfiles"