Coinbase’s CEO, Brian Armstrong, informed employees early Tuesday that the company will be reducing its workforce by approximately 14%, which translates to around 700 jobs, as it shifts focus towards artificial intelligence.
In a public message shared shortly before 7 a.m., the company announced the layoffs were necessary due to the rapid changes AI is bringing to the tech landscape.
Armstrong noted that impacted employees would be receiving further information soon, although some reported that their access to company systems had already been cut off when the email arrived.
He acknowledged that this decision might come as a shock and described the layoffs as a tough but essential move for safeguarding customer data.
While Armstrong emphasized that Coinbase is still financially stable and ready for future growth, he also mentioned that prevailing market conditions necessitate a reimagining of the company to be “lean, fast, and AI-native.”
The CEO claimed that engineers using AI tools can now complete tasks in days that would have taken entire teams weeks in the past. He also pointed out that even non-technical staff are beginning to write production-level code and that many routine tasks are being automated.
At the close of 2025, Coinbase had nearly 4,951 employees, with these layoffs expected to impact about 700 individuals.
Armstrong indicated that affected employees in the U.S. would receive at least 16 weeks of severance pay, plus additional compensation based on their tenure, alongside continued healthcare benefits and stock options.
He mentioned a significant revamp of Coinbase’s internal culture, proposing to flatten the organizational structure to fewer than five layers beneath the CEO and COO.
The aim is to create a smaller, more focused team that can work more efficiently and effectively in an AI-driven environment.
Armstrong also mentioned the idea of “one-person teams” that would integrate engineers, designers, and product managers into a single role.
Coinbase is now one of many leading tech firms making similar cuts, citing the influence of AI. Earlier this year, Oracle also laid off thousands while shifting its focus to AI capabilities.
Amazon has gone through multiple rounds of layoffs from late 2025 to 2026 as part of an effort to streamline its operations. Meanwhile, Meta recently launched another round of layoffs affecting about 8,000 employees, redirecting funds from the Metaverse to AI initiatives.
Other companies, such as Block and Atlassian, are similarly reducing their workforces to prioritize AI-related projects.
Armstrong asserted that the changes at Coinbase extend beyond just layoffs.
In a tweet, he shared that he had sent an email to all employees explaining the rationale behind the cuts and how they will position the company going forward.
He expressed a desire to fundamentally change the company’s operational structure by removing what he termed “pure managers” and promoting a more hands-on approach from executives.
Coinbase, founded in 2012 during cryptocurrency’s early days, saw significant growth during the pandemic as Bitcoin prices soared, but has since faced volatility in the digital asset market.
The company’s valuation took a hit following the post-pandemic crypto slump but rebounded as Bitcoin reached new heights last year. However, trading activity has slowed, with growing investor interest shifting towards AI.
