Coinbase plans 14% workforce reduction amid company restructuring

Coinbase said on Tuesday that it is cutting approximately 700 jobs, representing about 14% of its workforce, as part of a broader restructuring effort designed to respond to market volatility and increase reliance on AI tools to boost efficiency.

The restructuring includes simplifying the company’s organisational structure to just five layers beneath the CEO and COO, according to an internal email that CEO Brian Armstrong publicly shared on the company’s blog.

As part of the reorganisation, managers will be expected to take on more direct responsibilities, and leadership roles may now include overseeing more than 15 direct reports. The company is also shifting toward smaller, more agile teams that incorporate AI tools into their workflows. It plans to experiment with “one-person teams” that combine engineering, design, and product management functions.

Coinbase disclosed in a filing with the U.S. Securities and Exchange Commission that it expects to incur between $50 million and $60 million in severance-related costs resulting from the layoffs.

In his message to employees, Armstrong cited the unpredictable nature of the cryptocurrency market as a key factor in the decision to reassess the company’s cost structure.

“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,” he wrote.

Armstrong also emphasised the growing role of artificial intelligence in reshaping how work gets done within the company.

“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.”