Coinbase cuts 14% of staff as AI reshapes how crypto companies operate

Coinbase has announced a significant workforce reduction, cutting approximately 14% of its staff, which amounts to around 660 employees out of its 4,700-person workforce. CEO Brian Armstrong cited two primary reasons for this decision: the ongoing crypto market downturn and the transformative impact of artificial intelligence on company operations. Armstrong explained that AI has dramatically increased the speed at which small engineering teams can work, prompting Coinbase to re-evaluate its cost structure to become "leaner, faster, and more efficient" for future growth. Employees in the U.S. affected by the layoffs will receive at least 16 weeks of base pay plus two weeks for every year of service, with similar provisions for international employees according to local laws. This move by Coinbase follows a trend of layoffs in the crypto industry, with other companies like Algorand, Gemini, and Crypto.com also reducing their workforces, often attributing these cuts to macro headwinds, weak token prices, and the increasing integration of AI into workflows.

(Source：CoinDesk)