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Coinbase said Tuesday it will lay off about 700 employees, equal to 14% of its workforce, as the crypto exchange adjusts costs during a weaker market.
Good to Know
Coinbase is cutting staff while also changing how teams operate. CEO Brian Armstrong shared an internal email on the company blog, outlining a flatter structure, more hands-on managers and heavier use of AI tools.
The company said the restructuring will reduce management layers to five below the CEO and COO. Leaders may now manage more than 15 direct reports, while managers will need to contribute more directly instead of only overseeing work.
Armstrong tied the cuts to crypto market cycles and current pressure on revenue. He wrote:
“While we’ve managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth.”
The company also plans to test smaller teams that rely more on AI. Armstrong said Coinbase will experiment with “one-person teams” that combine engineering, design and product management work. He also said:
“AI is changing how we work. Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day […] This is a new way of working, and we need to leverage AI across every facet of our jobs.”
Coinbase disclosed in an SEC filing that severance costs should land between $50 million and $60 million. The exchange framed the job cuts as part of a wider plan to work faster with fewer layers and smaller teams.