Coinbase is ready to slashing its workforce by roughly 14%, or 660 workers in response to unfavourable market circumstances and AI challenges.
CEO Brian Armstrong introduced the cuts in an X submit on Tuesday, citing the “two forces” that converged in his agency’s resolution to slash workers.
Coinbase has greater than 4,700 workers, in line with its web site, so 14% could be equal to round 660.
“Whereas we have managed by way of that cyclicality many instances earlier than and are available out stronger on the opposite aspect, we’re presently in a down market and wish to regulate our value construction now in order that we emerge from this era leaner, quicker, and extra environment friendly for our subsequent section of development,” stated the CEO of the Nasdaq-listed firm.
The second cause is AI, and the way it’s altering the best way Coinbase operates, he stated. “Over the previous yr, I’ve watched engineers use AI to ship in days what used to take a workforce weeks,” Armstrong acknowledged, including that “the tempo of what is attainable with a small, targeted workforce has modified dramatically, and it is accelerating day-after-day.”
The Coinbase CEO stated that workers laid off within the U.S. will obtain a minimal of 16 weeks’ base pay, plus 2 weeks of severance pay for yearly they have been employed by the corporate. He additionally stated that these not within the U.S. would obtain comparable assist below native legislation.
“Over the previous 13 years, we’ve got weathered 4 crypto winters, gone public, and constructed essentially the most trusted platform in our trade,” he stated.
A wave of crypto layoffs this yr has highlighted the hole between two handy narratives: macro headwinds and AI transformation. Algorand reduce its workers by 25% in late March, citing “the unsure international macro atmosphere” and a broader crypto downturn. Gemini Area Station (GEMI) stated it might remove roughly 200 positions in February, a couple of quarter of its workers, a determine that had grown to 30% by mid-March. On Thursday, Crypto.com stated it’s trimming 12% of its workforce, about 180 roles.
All however Algorand pointed on to macro circumstances, weak token costs and a pivot towards higher use of AI within the workflow.
UPDATE (Might 5, 2026, 11:50 UTC): Amends lede and provides rationale for estimate of variety of workers laid off.