Coinbase Cuts 700 Jobs, Blames AI—Stock Rises 4%
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Coinbase Cuts 700 Jobs, Blames AI—Stock Rises 4%
Behind this round of layoffs is the cryptocurrency market’s $1.5 trillion loss from its peak—and a collective experiment by tech companies to restructure their organizations using AI.
Navigating Web3 tides with focused insightsAuthor: DLNews
Translation & Editing: TechFlow
TechFlow Intro: Coinbase, the largest U.S. cryptocurrency exchange, announced a 14% workforce reduction. CEO Brian Armstrong publicly stated that AI enables engineers to complete in days what previously took teams weeks—and that non-technical staff can now write and deploy code. Wall Street voted with its feet: the stock rose 4% in early trading. Behind this wave of layoffs lies the $1.5 trillion erosion in crypto market value from its peak—and a collective experiment across tech companies to restructure organizations using AI.
Coinbase just cut 700 jobs—but Wall Street approved.
The U.S. flagship crypto exchange saw its stock rise as much as 4% in early trading on Tuesday, following its announcement of roughly a 14% workforce reduction and a major restructuring effort pivoting the company toward artificial intelligence.
In an internal email to employees, CEO Brian Armstrong cited two key pressures: the crypto market’s ~$1.5 trillion decline from its peak, and AI.
“Over the past year, I’ve watched engineers use AI to accomplish in days what used to take teams weeks,” Armstrong wrote in the email, which he later shared on X. “Non-technical teams can now write and deploy code, and many of our workflows are being automated.”
“We’re fundamentally changing how we operate: rebuilding Coinbase as an agent, with humans at the edge responsible for aligning it,” he added.
According to its 2025 financial report, Coinbase employed 4,951 people as of December 31 last year. A 14% reduction thus affects 693 employees.
This move places Coinbase alongside Meta and Microsoft—Meta is cutting roughly 10% of its workforce, while Microsoft is reducing headcount via a voluntary retirement program. Many high-flying tech firms cite the same rationale.
Coinbase expects to incur $50–60 million in restructuring expenses, mostly booked in Q2. The early-market reaction suggests investors view this as a long-overdue adjustment.
Armstrong said he aims to cap organizational layers below the CEO at no more than five, have leaders manage up to 15 direct reports, and build what he calls “AI-native squads”—small, focused teams where one person can simultaneously serve as engineer, designer, and product manager.
“The future belongs to small, high-context teams that move fast,” he said.
A Familiar Script
This isn’t Coinbase’s first round of layoffs.
Since launching in 2012, the exchange has cut staff during every crypto winter—highlighting how tightly its fortunes are tied to Bitcoin’s price and broader crypto market sentiment.
This downturn has been especially harsh. Bitcoin remains down 35% from its October 2025 peak of $126,000, while the S&P 500 hit an all-time high in April.
“We’re proactively adjusting ahead of time to rebuild Coinbase leaner,” Armstrong said.
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