Cryptocurrency exchange Coinbase to lay off up to 14% of its employees as part of its 'AI-native' policy.

Coinbase, a cryptocurrency exchange founded in 2012, has announced it will lay off up to 14% of its employees in line with its 'AI-native' policy. While Coinbase has not specified the exact number, Reuters reports that it will affect around 700 people.

Building a leaner and faster Coinbase

This is an email I sent earlier today to all employees at Coinbase:

Team,

Today I've made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the…

— Brian Armstrong (@brian_armstrong) May 5, 2026

Crypto exchange Coinbase to cut about 14% of workforce in AI-driven restructuring | Reuters
https://www.reuters.com/business/world-at-work/coinbase-cut-about-14-workforce-2026-05-05/

Coinbase CEO Brian Armstrong has now given two reasons for laying off staff.

One factor is the 'market.' Coinbase has sufficient capital and diversified revenue streams, so it can withstand some storms. However, quarterly fluctuations are intense, and recently there has been a downward trend, so it is necessary to streamline and optimize the cost structure now in preparation for the next growth phase.

Another area is the 'change in the way we work due to AI.' Releases that previously took teams several weeks to complete can now be finished in just a few days thanks to the introduction of AI over the past year. Many workflows have been automated, dramatically changing the pace at which smaller teams can work intensively.

Therefore, CEO Armstrong explained that 'the biggest risk is not taking action now,' and expressed his intention to restructure Coinbase into a lean, fast, and AI-native organization.

The organizational restructuring will reduce the structure below the CEO and COO to five layers. Furthermore, all team leaders will also be contributors, eliminating purely managerial positions.

Those affected by the layoffs have had their access to Coinbase's systems immediately revoked, and meetings with their leaders have been scheduled. They will also receive a severance package consisting of 16 weeks' worth of base salary, two weeks' worth of salary for each year of their career, their next stock option, and six months of COBRA (insurance premium) coverage. Documents filed with the Securities and Exchange Commission reveal that Coinbase's costs associated with these layoffs are between $50 million and $60 million.

The announcement came prior to Coinbase's first-quarter 2026 earnings report, and according to CNBC, Coinbase's stock price fell 2.5% after the announcement.

Coinbase also laid off 1,100 employees in 2022, citing 'too much rapid growth.'

Coinbase, a major cryptocurrency exchange, has laid off approximately 1,100 employees, representing 18% of its workforce, with its CEO admitting that the company 'grew too quickly' - GIGAZINE