Coinbase Global Inc. is cutting approximately 14% of its workforce, or about 700 jobs, according to CEO Brian Armstrong. In a post on X, Armstrong cited both the current crypto market downturn and the increasing adoption of artificial intelligence as key reasons for the reduction.
Armstrong noted that while Coinbase remains well-capitalized and diversified, a "down market" has forced the company to adjust its cost structure. He also emphasized that AI is reshaping operations, allowing smaller teams to ship production code and automate workflows.
The CEO announced plans to flatten the company's structure, reducing management layers and focusing on hiring AI-native talent. Coinbase will experiment with smaller "pods," including one-person teams, where employees take on combined roles. Remaining managers will serve as "player-coaches," working alongside their teams.
In a filing with the SEC, Coinbase estimated restructuring costs of $50 million to $60 million for severance and benefits. The layoffs follow a broader trend in the tech industry, including recent cuts at Block Inc., Crypto.com, and Algorand, all of which cited similar AI-driven restructuring.