Coinbase is cutting around 14% of its staff. This move is due to changes in the market and the growing impact of artificial intelligence.
Coinbase CEO Brian Armstrong shared on X (formerly Twitter) that two key reasons led to this decision.
Smaller Teams, Bigger Roles
He began by pointing to the instability currently affecting the cryptocurrency market. While the exchange is financially secure, its performance varies each quarter. Because the market is currently declining, the company is reducing expenses to streamline operations and prepare for future growth.
Another key change is how quickly AI is transforming work. According to Armstrong, engineers can now finish tasks in days that used to take weeks, and even teams without technical expertise are starting to write code and automate their processes. This is leading to much higher productivity from smaller teams, and the trend is happening company-wide.
Armstrong believes this is a crucial turning point, not just for Coinbase, but for many companies. He argues that the risk of not adapting quickly is higher than the risk of making changes too soon.
As we restructure Coinbase, we’re completely rethinking how we operate. We’re streamlining the organization by limiting management layers to a maximum of five levels below the CEO and COO. This is designed to help us make decisions faster and reduce unnecessary back-and-forth. It also means our leaders will be responsible for larger teams and have more direct oversight of their work.
Coinbase is streamlining its management structure and shifting towards smaller teams that focus on artificial intelligence. This includes trying out new team setups where one person might handle responsibilities across different areas like engineering, design, and product development.
As part of this restructuring, we’re reaching out to affected employees directly via email with details and opportunities to speak with both HR and senior leaders. To ensure security, access to company systems has already been disabled for those impacted. We’re committed to supporting them through this transition with comprehensive severance packages – including a minimum of 16 weeks’ base pay in the US, plus additional compensation factoring in their time with the company and equity. We’ll also be providing continued healthcare coverage for a set period. Importantly, we’re also offering tailored support for employees on work visas and those located outside of the US, ensuring we meet all local regulations and needs.
AI Shift Drives Layoffs
Many cryptocurrency companies have been laying off employees in recent months as they shift their focus to artificial intelligence. For example, Gemini cut its staff by around 30% in March, and Crypto.com reduced its workforce by 12% in the same week, both citing the need to adjust to changes driven by AI.
Jack Dorsey’s company, Block, also cut over 4,000 jobs. Interestingly, some of those employees were later brought back on board.
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2026-05-05 15:36