Coinbase cuts 14% of staff as AI reshapes how crypto companies operate
Brian Armstrong, the CEO at Coinbase, announced a workforce reduction of roughly 660 from its current 4,700.
What to know:
- Coinbase will lay off about 14 percent of its 4,700-person workforce, or roughly 660 employees, as it contends with a crypto market downturn and shifts in its operations driven by artificial intelligence.
- Chief executive Brian Armstrong said AI has enabled small engineering teams to work far more quickly, prompting the company to rethink its cost structure and emerge “leaner, faster, and more efficient” for its next phase of growth.
- U.S. employees who are laid off will receive at least 16 weeks of base pay plus two weeks for every year of service, and similar support will be offered to workers abroad in accordance with local laws.
“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,” said the CEO of the Nasdaq-listed company.
The second reason is AI, and how it is changing the way Coinbase operates, he said. “Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks,” Armstrong stated, adding that “the pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day.”
The Coinbase CEO said that employees laid off in the U.S. will receive a minimum of 16 weeks’ base pay, plus 2 weeks of severance pay for every year they were employed by the company. He also said that those not in the U.S. would receive similar support under local law.
