Coinbase is about to slashing its workforce by roughly 14%, or 660 workers in response to damaging market situations 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 choice to slash workers.
Coinbase has greater than 4,700 workers, in accordance with its web site, so 14% can 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 at the moment in a down market and want to regulate our price construction now in order that we emerge from this era leaner, quicker, and extra environment friendly for our subsequent section of progress,” mentioned the CEO of the Nasdaq-listed firm.
The second purpose is AI, and the way it’s altering the way in which Coinbase operates, he mentioned. “Over the previous yr, I’ve watched engineers use AI to ship in days what used to take a staff weeks,” Armstrong acknowledged, including that “the tempo of what is potential with a small, targeted staff has modified dramatically, and it is accelerating each day.”
The Coinbase CEO mentioned 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 mentioned that these not within the U.S. would obtain related assist beneath native legislation.
“Over the previous 13 years, we have now weathered 4 crypto winters, gone public, and constructed probably the most trusted platform in our trade,” he mentioned.
A wave of crypto layoffs this yr has highlighted the hole between two handy narratives: macro headwinds and AI transformation. Algorand lower its workers by 25% in late March, citing “the unsure world macro atmosphere” and a broader crypto downturn. Gemini House Station (GEMI) mentioned 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 mentioned it’s trimming 12% of its workforce, about 180 roles.
All however Algorand pointed on to macro situations, weak token costs and a pivot towards higher use of AI within the workflow.
UPDATE (Could 5, 2026, 11:50 UTC): Amends lede and provides rationale for estimate of variety of workers laid off.
