NEW DELHI — Coinbase will cut 14% of its workforce as the cryptocurrency exchange moves to reduce costs and reshape operations around artificial intelligence, CEO Brian Armstrong said Tuesday.
Armstrong said affected employees would receive information through their personal email accounts, along with invitations to meet with human resources and senior leaders in their organizations.
“Coinbase system access has been removed today. I know this feels sudden and harsh, but it is the only responsible choice given our duty to protect customer information,” Armstrong said in a post on X.
The company said the layoffs are part of an effort to become leaner, faster and more AI-native as market conditions remain volatile and automation changes how work is done across the business.
“Today I’ve made the difficult decision to reduce the size of Coinbase by 14 per cent. Two forces are converging at the same time. We need to be front footed to respond to both,” Armstrong wrote.
Armstrong said Coinbase remains well-capitalized, has diversified revenue streams and is positioned to manage market downturns. However, he said the company’s business remains volatile from quarter to quarter, requiring it to adjust its cost structure during the current down market.
“While we’ve managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” Armstrong said.
He also pointed to rapid changes in workplace productivity driven by AI. Armstrong said engineers are now using AI tools to complete projects in days that previously took teams weeks, while non-technical employees are increasingly shipping production code and more internal workflows are being automated.
“The pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day,” Armstrong said.
Armstrong said Coinbase is moving early and deliberately to rebuild the company around AI and return to the speed and focus of its startup years.
“We need to return to the speed and focus of our startup founding, with AI at our core,” he said.
U.S.-based employees affected by the layoffs will receive at least 16 weeks of base pay, plus two additional weeks for each year worked, their next equity vest and six months of COBRA benefits. Employees on work visas will receive additional transition support. Workers outside the U.S. will receive similar assistance based on local requirements. (Source: IANS)
