Coinbase, one of the world’s largest cryptocurrency exchanges, has announced it will reduce its global workforce by around 14%, affecting approximately 700 employees. The decision comes as the company restructures its operations to adapt to both ongoing crypto market volatility and the rapid rise of artificial intelligence (AI) in software development.
According to company statements and regulatory filings, Coinbase is aiming to make its operations leaner and more efficient while positioning itself for what it calls an “AI-native” future. The layoffs are expected to cost the company between $50 million and $60 million in severance and related expenses.
CEO Brian Armstrong said the company is responding to two major forces: a prolonged downturn in crypto markets and significant productivity gains driven by AI tools. He noted that engineers and other teams are now able to complete tasks in days that previously required weeks, as AI increasingly automates coding, design, and operational workflows.
As part of the restructuring, Coinbase plans to simplify its organisational structure by reducing management layers and increasing the responsibilities of remaining leaders. The company is also exploring smaller, highly efficient teams where AI tools assist employees in handling multiple roles, such as engineering, product design, and management functions.
Armstrong has described this shift as a move toward “AI-native teams,” where human workers are supported by automation to improve speed and output. The company believes this approach will help it stay competitive in a rapidly changing industry while controlling costs.
Despite the layoffs, Coinbase’s stock rose after the announcement, reflecting investor confidence in its restructuring strategy. The company stated that the changes are part of a long-term effort to improve efficiency rather than a short-term cost-cutting exercise alone.
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