Coinbase Lays Off 14% of Workforce Amid Crypto Industry Turbulence?

Coinbase is set to cut around 14% of its workforce, equivalent to approximately 700 employees. This decision was announced by CEO Brian Armstrong amid a ‘volatile’ cryptocurrency market and major operational changes at the company due to the adoption of artificial intelligence (AI).

In an internal email to employees, Armstrong explained that the company is now transforming its working methods with smaller but more efficient teams thanks to AI assistance.

In some cases, one person will replace the work previously done by many, supported by AI agents. He stated that remaining employees must leverage AI in every aspect of their work.

“In short, AI is bringing major changes to the way the company operates, and we are reshaping Coinbase to lead in this new era,” he said, as quoted from Forbes on Wednesday, 6 May 2026.

Coinbase’s step is part of a larger trend in the technology industry throughout 2026, where many companies are conducting layoffs to redirect investments to AI while improving operational efficiency.

In April 2026, Meta announced it would cut 10% of its workforce and not fill around 6,000 job vacancies. This step was taken to cover the large costs of AI development, with total layoffs estimated to reach 8,000 people in May.

Previously, Snap also announced the reduction of around 1,000 jobs. CEO Evan Spiegel described the decision as being taken due to “rapid advances in artificial intelligence” allowing work to be done by fewer people. The move is projected to save up to US$500 million or approximately Rp8.5 trillion in the second half of 2026.

Oracle is even planning layoffs on a much larger scale, namely between 20,000 and 30,000 employees, as part of major investments in AI infrastructure. Meanwhile, other companies like Atlassian cut around 1,600 jobs, and Jack Dorsey’s Block reduced more than 4,000 employees in a major restructuring.

The cryptocurrency firm Crypto.com also cut 12% of its workforce or around 180 people. CEO Kris Marszalek stated that the layoffs target roles that have not adapted to the new world as AI is integrated across the company.

In total, the firm Challenger, Gray and Christmas recorded around 30,000 layoffs throughout 2026 linked to AI. This figure follows the 2025 trend, which recorded nearly 55,000 job cuts due to the technology.