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Coinbase to lay off 14% of employees due to weak market and shift to AI
Coinbase will cut about 14% of its workforce amid a weak market and a broader restructuring of its business around artificial intelligence. CEO Brian Armstrong announced the decision in a letter to employees.
According to Armstrong, two factors influenced the decision: the cyclical nature of the crypto market and the rapid adoption of artificial intelligence across Coinbase’s workflows. He emphasized that the company remains financially strong, but needs to reduce costs while market conditions remain unstable.
Armstrong said AI has already changed the way small teams work. According to him, engineers can now use AI to complete in a few days tasks that previously took teams weeks. He also noted that even non-technical teams are beginning to ship production code as more processes become automated.
The Coinbase CEO called this a “turning point” for the company and for business as a whole. According to him, the exchange must become more compact, faster and “AI-native.” Armstrong added that Coinbase wants to return to the speed and focus it had at the startup stage.
What else the company will change
As part of the layoffs, Coinbase will also change its management structure. The company will limit the organization to five layers of management below the CEO and COO. Armstrong believes fewer layers will help the company make decisions faster and reduce coordination costs.
Coinbase also plans to remove purely managerial roles. Armstrong said every leader must be a “player-coach,” meaning they should not only manage, but also remain an active contributor. In addition, the company will test small AI-native teams where one person may handle product, design and engineering tasks at once.
Armstrong said employees affected by the layoffs will receive notices via personal email. U.S. employees will receive at least 16 weeks of base pay, plus two additional weeks for every year they worked at the company.
AI is becoming a reason for layoffs
Beyond Coinbase, the layoff trend has also appeared at other companies. Atlassian, Block and Salesforce have also linked job cuts to higher efficiency from AI, while Lufthansa previously announced plans to eliminate 4,000 administrative positions by the end of the decade, partly due to the wider use of artificial intelligence.
The logic is similar across companies: AI is taking over parts of coding, support, analytics, paperwork and internal processes. As a result, businesses no longer always need large teams for tasks that used to take weeks.
As a reminder, Coinbase is expanding Solana routing capabilities through an integration with DFlow.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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