Coinbase, the biggest crypto exchange in the United States, has said it will lay off about 14% of its workforce. The company made the announcement on Tuesday, pointing to the ups and downs in the crypto market and the growing impact of artificial intelligence on how work gets done.
Coinbase cuts jobs: Around 700 employees affected
The company said the job cuts will impact roughly 700 employees out of its nearly 5,000 staff members. In a corporate filing, Coinbase added that the restructuring will cost between $50 million and $60 million. This includes severance pay, termination benefits and other related expenses.
Founded in 2012 in San Francisco, Coinbase runs a platform where people can buy and sell cryptocurrencies like Bitcoin. The company’s earnings largely depend on how crypto prices move and how much trading happens on its platform.
‘Everyone will need to get their hands dirty now’ – What the CEO said
Chief executive Brian Armstrong spoke about the decision in a social media post. He said, “AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era.” He added, “This is a new way of working, and we need to leverage AI across every facet of our jobs.”
According to him, the company wants to move towards smaller teams. These teams would include people managing AI agents, digital tools that can handle tasks like writing code, along with human managers who are expected to stay closely involved in day-to-day work. As he put it, managers would need to get “their hands dirty alongside their teams.”
In his post, Armstrong said AI has brought the company to “an inflection point.” He explained that the biggest risk would be to do nothing. “We’re adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native,” he said.
He also pointed to the current state of the crypto market, adding, “We’re currently in a down market and need to adjust our cost structure now.”
A wider trend across tech
Coinbase is not alone in linking job cuts to the rise of artificial intelligence. Many tech companies are now openly saying that AI is changing how they hire and structure teams. For example, Block Inc. said in February that it would lay off 40% of its workforce, around 4,000 employees, citing rapid improvements in AI.
Last month, Meta Platforms, which owns Facebook, Instagram and WhatsApp, announced plans to cut 10% of its workforce, or about 8,000 jobs, and also shut down another 6,000 open roles as it continues to invest heavily in AI.
Around the same time, Microsoft offered early retirement to thousands of long-serving employees as it looks to slim down while spending more on artificial intelligence.