On Tuesday, Coinbase revealed plans to lay off approximately 700 employees, equating to about 14% of its workforce. This strategic move comes as the cryptocurrency trading giant embraces artificial intelligence to streamline operations, cut costs, and enhance productivity.
In a letter shared publicly on social media, Brian Armstrong, co-founder and CEO of Coinbase, explained that the decision to downsize is in response to ongoing market instability. Armstrong emphasized the necessity of refining their operational model amidst the current downturn to prepare for future growth opportunities.
“We’ve navigated through market fluctuations before and emerged stronger each time,” Armstrong stated. “Currently, however, we face a down market, and must adjust our cost structure to become leaner, faster, and more efficient as we gear up for the next growth phase.”
Coinbase is also planning to integrate AI technologies into its workflow, transitioning some roles to focus on managing AI agents. Armstrong highlighted the company’s intention to trial “one-person teams” that would merge the responsibilities of engineers, designers, and product managers.
“This represents a new approach to work, and we must integrate AI across all aspects of our roles,” Armstrong added.
In a regulatory filing, Coinbase disclosed that by the end of 2025, it employed nearly 5,000 individuals. The company aims to finalize these layoffs by the second quarter of 2026, anticipating restructuring costs to range between $50 million and $60 million.
Coinbase is the latest in a wave of companies to announce AI-related job cuts. In February, Jack Dorsey said his financial technology company Block would cut its workforce by nearly half as it uses AI to increase productivity. Other companies that have cited AI in their layoff announcements include Chegg, CrowdStrike and Pinterest.
