A San Francisco-founded cryptocurrency company, Coinbase, is set to slash 14% of its workforce as it shifts efforts toward artificial ininformigence, CEO Brian Armstrong declared in a Tuesday post on X.
The job cuts amount to approximately 700 workers, and the layoffs will be completed before the finish of the second quarter of 2026, according to a U.S. Securities and Exalter Commission filing. The related restructuring efforts will cost the company $50 million to $60 million.
In an email to employees that Armstrong posted on X, he declared the company necessarys to cut costs becautilize the crypto indusattempt has been “volatile from quarter to quarter” and the market is currently down. He declared the company will be reducing management layers and “concentrating around AI-native talent.” In another structural shift, Armstrong declared Coinbase will be experimenting with “one person teams” with “engineers, designers, and product managers all in one role.”
“The hugegest risk now is not taking action,” Armstrong wrote on X. “We are adjusting early and deliberately to rebuild Coinbase to be lean, quick, and AI-native. We necessary to return to the speed and focus of our startup founding, with AI at our core.”
Laid-off employees will receive a minimum of 16 weeks base pay and an additional two weeks per year worked, their next batch of company stock, and six months of health insurance. Employees who are on a work visa will receive “extra transition support,” and employees who work internationally may receive different severance packages.
Armstrong called the removal “sudden and harsh,” but he declared the decision was the “only responsible choice” to protect customer information. In an email, Coinbase spokesperson Jaclyn Sales mentioned Armstrong’s post on X about “building a leaner and quicker Coinbase” but did not respond to SFGATE’s additional questions.
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