Coinbase Restructures Organisation Due to AI, 700 Employees Laid Off

US cryptocurrency company Coinbase has conducted layoffs affecting around 14% of its global workforce. The number of employees laid off is approximately 700. Coinbase CEO Brian Armstrong stated that this decision responds to two major simultaneous pressures: the weakening crypto market conditions and changes in work practices due to advancements in artificial intelligence (AI). “These conditions require the company to adjust its cost structure to emerge from this period in a leaner, faster, and more efficient state,” Armstrong wrote in a memo to employees, which was also shared on social media platform X (formerly Twitter). Therefore, Coinbase is aiming to return to its early-stage work model, with AI at the core of operations. “In short, AI is bringing major changes to how companies operate, and we are reshaping Coinbase to lead in this new era,” Armstrong explained. “This is the new way of working, and we need to leverage AI in every aspect of our jobs,” he added. As part of this company transformation, Coinbase will overhaul its organisational structure by reducing management layers, accelerating decision-making, and forming small AI-based teams. Coinbase estimates that this restructuring process will be completed in the second quarter of 2026, with costs of around 50 million to 60 million US dollars, according to a report to the US Securities and Exchange Commission (SEC). Despite the layoffs, Armstrong emphasised that Coinbase is not changing its business direction in the crypto sector. Armstrong remains optimistic about the future of the industry, particularly through developments in stablecoins, asset tokenisation, and prediction markets, which are seen as drivers of the next wave of adoption. Coinbase’s 2026 strategy reflects broader trends in the technology industry. Recently, several tech companies have been cutting jobs to shift focus to AI utilisation, as summarised by KompasTekno from CNBC. Companies such as Block, Pinterest, CrowdStrike, and Chegg have also reportedly conducted layoffs for similar reasons, namely business restructuring and changes in workforce needs due to AI.