The cryptocurrency exchange is laying off roughly 700 employees and restructuring operations to reduce costs and integrate artificial intelligence across its business.
12:49 PM
Coinbase announced Tuesday that it is cutting approximately 700 jobs, representing roughly 14% of its workforce, as the cryptocurrency trading company turns to artificial intelligence to reduce costs and boost productivity.
In a letter to employees shared on social media, Coinbase co-founder and CEO Brian Armstrong said the crypto exchange is streamlining its operations amid continued market volatility. "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 wrote.
Armstrong stated that the company needs to "return to the speed and focus of our startup founding, with AI at our core." He added that Coinbase plans to shift some jobs to managing fleets of AI agents and will experiment with "one-person teams" that combine the duties of engineers, designers and product managers.
"This is a new way of working, and we need to leverage AI across every facet of our jobs," Armstrong said.
The layoffs come ahead of Coinbase's first-quarter earnings announcement. Armstrong characterized the current phase of the cryptocurrency industry as a shift away from easy growth driven by speculation, token launches and retail hype. Exchanges are moving toward a more disciplined phase focused on steadier revenue, regulation, compliance and institutional adoption.
The move is part of a broader wave of tech industry layoffs tied to increased AI investment. Other companies that have announced workforce reductions in recent weeks include Gemini Space Station, Block, Pinterest, CrowdStrike and Chegg.
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