Cryptocurrency exchange Coinbase (COIN), listed on Nasdaq, is laying off approximately 14% of its workforce as it navigates market downturns and shifts toward AI-native operations.
Coinbase CEO Brian Armstrong confirmed that the X layoffs were due to the company's business still experiencing significant volatility each quarter, and AI changing how teams work.
“We are proactively and intentionally making adjustments to reshape Coinbase to be leaner, faster, and AI-driven,” Armstrong said. “We need to return to the speed and focus of our early days and put AI at the core.”
According to information from the company’s investor relations website, the company had approximately 4,900 employees as of the end of 2025, meaning the latest layoffs will affect around 680 employees.
“We are currently in a market downturn and need to adjust our cost structure so we can emerge from this period more streamlined, faster, and more efficiently, ready for the next phase of growth,” Armstrong said.
Coinbase reported a net loss of $667 million in the fourth quarter of last year, after posting a profit in the previous quarter. The company reported a full-year net profit of $1.26 billion for 2025, a 51% decline from 2024.
Coinbase plans to release its first-quarter earnings on May 7.
Artificial Intelligence Transformation
The key driver behind this restructuring is the company’s transition to an AI-native operating model. Armstrong noted that he is “rebuilding Coinbase as an intelligent system, with humans coordinating at the edges.”
Armstrong stated that the company will shift to a flatter organizational structure, “eliminating purely managerial roles.” The company will also focus on attracting top talent capable of managing clusters of AI agents to drive business growth.
“Over the past year, I’ve seen engineers accomplish in days what previously took teams weeks to complete using artificial intelligence. Non-technical teams are now delivering production code, and many of our workflows have been automated,” Armstrong added.
Coinbase's layoffs have intensified the broader wave of job cuts across the cryptocurrency industry. Crypto.com announced a 12% workforce reduction in March, stating that the company "has joined the ranks of organizations integrating enterprise-grade AI."
Gemini also stated in February that it planned to lay off up to 200 people, while Jack Dorsey’s Block Inc. cut about 40% of its workforce that same month.
According to The Block, Coinbase's stock rose 4% to $211 in pre-market trading on Tuesday. Coin price page