New Delhi, May 5: Cryptocurrency exchange Coinbase announced on Tuesday that it will reduce its workforce by 14%. This decision comes as artificial intelligence (AI) rapidly transforms the way people work, prompting the company to become leaner, faster, and more AI-driven.
The company stated that affected employees will receive detailed information via their personal emails, inviting them to discussions with HRBP and senior leaders.
Coinbase CEO Brian Armstrong shared on social media platform X, “Today, I made the tough decision to reduce Coinbase’s size by 14%. We face two significant challenges simultaneously, and we must be prepared to tackle both.”
He noted that, for security reasons, employees’ system access has been revoked immediately.
“I understand this decision may seem sudden and harsh, but it is a necessary step to protect customer information,” he added.
Armstrong highlighted that the first reason for the layoffs is the current market conditions. He reassured that Coinbase is well-capitalized, has diverse revenue streams, and is capable of facing any economic challenges.
However, he acknowledged that the company’s business experiences fluctuations quarter by quarter. “We have emerged stronger from cyclical situations before, but the market is weak right now, and we need to adjust our cost structure to be more robust for the next phase of growth,” Armstrong stated.
The second major reason he cited is AI. “Over the past year, I have observed engineers completing tasks in days with AI that previously took weeks. Non-technical teams are now also producing code, and many processes are becoming automated.”
He further explained that the ability to work with smaller, focused teams has rapidly increased, and this change is accelerating continuously.
Armstrong emphasized that the company is intentionally and timely making changes to reshape Coinbase into a leaner, faster, and AI-driven organization. “We need to return to our startup pace and focus, with AI at the center,” he said.
Employees in the U.S. will receive at least 16 weeks of base pay (plus an additional two weeks for each year of service), the next equity vesting, and COBRA benefits for six months.
Employees on work visas will receive additional support, while those outside the U.S. will also get similar assistance according to local regulations.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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