On Tuesday, Coinbase CEO Brian Armstrong announced that the cryptocurrency exchange will lay off approximately 14% of its workforce, describing the move as a response to the crypto market downturn and a deeper shift toward an AI-first operational model.
“We’re not just laying off staff and cutting costs—we’re fundamentally changing how we operate: rebuilding Coinbase as a smart system with humans coordinating at the edge,” Armstrong wrote in an internal company email, which he later shared on Twitter Wednesday morning.
Armstrong pointed out the volatility in the cryptocurrency market and said, "We are currently in a down market and need to adjust our cost structure," adding that artificial intelligence has changed the way exchanges operate.
Over the past year, I’ve seen engineers complete in days what previously took teams weeks, using artificial intelligence,” he wrote. “Now, non-technical teams are delivering production code, and many of our workflows have been automated.
This round of layoffs is a structural adjustment by one of the most well-known publicly traded companies in the cryptocurrency sector, as AI-driven workforce reductions continue to spread across the broader technology and cryptocurrency industries.
Goldman Sachs economists estimated that last month, AI substitution technologies led to the loss of approximately 25,000 jobs per month in the U.S., while augmentation technologies only recreated about 9,000 jobs—resulting in a net monthly loss of approximately 16,000 jobs.
This restructuring will flatten Coinbase’s organizational structure to a maximum of five levels below the CEO and COO, eliminating purely managerial roles and requiring all leaders to maintain an active individual contributor role.
Hiring will focus on what Armstrong calls an "AI-native team," which includes experimental single-person teams that combine engineering, design, and product functions.
Armstrong wrote: "Leaders will have more power, with direct reports potentially exceeding 15 people."
Shortly after Coinbase announced its formation, the announcement was made. Testing AI agents The platform was deployed internally, modeled after co-founders Fred Ehrsam and former CTO Balaji Srinivasan, to provide employees with strategic and creative feedback.
At the time, Armstrong stated that the company "could have more agents than employees in the near future."
AI-driven acceleration of layoffs
An AI-driven wave of layoffs has swept through the cryptocurrency industry, leaving thousands of employees unemployed as companies reallocate resources toward automation, AI infrastructure, and leaner operational models.
Last month, the company laid off approximately 8,000 employees, and CEO Mark Zuckerberg is redirecting funds toward artificial intelligence infrastructure, which is expected to cost as much as $135 billion this year.
Microsoft's buyout led to a 7% reduction in staff the same week.
In the cryptocurrency space, Bitcoin miners Mara faced similar challenges last month when Algorand laid off 15% of its staff as it shifted toward AI data centers; in March, Algorand also cut 25% of its workforce, and in February, Jack Dorsey’s company eliminated over 4,000 positions.
System access for affected Coinbase employees will be immediately revoked.
U.S. employees will receive at least 16 weeks of base salary as severance, plus two additional weeks of pay for each year of service, the next equity vesting, and six months of COBRA coverage; visa holders will also receive additional transition support.
“Coinbase emerging from this transformation will be better positioned than ever to achieve our mission,” Armstrong wrote.