Coinbase became the latest crypto firm to cut jobs, eliminating 14% of its workforce. CEO Brian Armstrong said the company is using AI to flatten its organizational structure, with managers acting as "player-coaches."
Block and Crypto.com have made similar moves, citing AI-driven efficiency. Coinbase and Crypto.com cut about 700 and 180 employees respectively. Block handed out 4,000 pink slips in February.
Crypto has weathered bear markets before, but this time companies are using the downturn to rebuild with AI at the center. Coinbase reported a weaker-than-expected Q1 loss, posting a net loss of $1.49 per share on $1.41 billion in revenue, missing analyst expectations.
Whether AI is the real driver is debated. Scale AI CEO Jason Droege called it "washing the layoffs," arguing companies are using AI as an excuse for rightsizing.
According to jobs tracker Layoffs.fyi, global tech layoffs in Q1 2026 hit the highest since Q1 2023, with more than 81,747 people losing jobs. AI led reasons for job cuts in April for the second consecutive month, per Challenger, Gray & Christmas.
Unlike the 2022-2023 crypto crash, this wave is framed as proactive restructuring for efficiency rather than emergency survival.