Coinbase plans to cut 14% of its staff as it reorganizes around artificial intelligence and changing market conditions.
CEO Brian Armstrong told employees the company is reacting to weaker market performance and fast progress in AI. He said Coinbase will simplify its management, cut down on leadership layers, and use smaller AI-focused teams to automate work and boost productivity.
The reorganization will limit the company’s structure to five layers below the CEO and COO. Managers will also be expected to work more closely with their teams, acting as “player-coaches” instead of just overseeing from afar.
Coinbase said U.S. employees who are laid off will get at least 16 weeks of base pay, extra pay based on how long they worked there, help with equity vesting, and six months of healthcare coverage through COBRA.
A filing with the U.S. Securities and Exchange Commission showed the restructuring could cost $50 million to $60 million in severance and related expenses. Coinbase expects to finish most of the process in the second quarter of 2026.
This move is part of a larger trend in the crypto industry, where companies are cutting costs and using more AI tools. Other firms like Gemini, Crypto.com, and the Algorand Foundation have also announced layoffs recently as markets weaken and automation increases.
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