Coinbase has announced that about 14 per cent of its staff will be laid off as part of a major restructuring. The decision comes at a time when the company is facing a slowdown in the crypto market and preparing for its first-quarter earnings report. About 7,800 employees will be affected, with the company promising severance pay, healthcare coverage, equity vesting, and additional support for visa holders.
The layoffs are linked to two big shifts. First, Coinbase wants to reduce costs and streamline operations to remain resilient through volatile market cycles.
Second, the company is embracing artificial intelligence as a core part of its future. Brian Armstrong, CEO, Coinbase, explained that AI is already speeding up work, allowing smaller teams to achieve more in less time. This has led Coinbase to flatten its structure, cut layers of management, and experiment with lean, AI-driven teams.
The restructuring will place more responsibility on leaders, who may manage larger teams directly while staying hands-on. In some cases, Coinbase is testing “one-person teams” that combine multiple roles, reflecting how AI tools are changing workflows.
Despite the job cuts, Coinbase’s net sales is reported to have risen 4.6 per cent in the recent quarter, with growth across all business lines. Shares also reportedly gained nearly 2 per cent after the announcement. The move highlights a wider trend in tech, where companies are reducing headcount while investing heavily in AI to drive efficiency and innovation.
For employees, the shift means sudden disruption. For Coinbase, it marks a deliberate push to rebuild as a leaner, faster, AI-native company ready for the next phase of crypto adoption.