Coinbase disclosed plans Tuesday to cut about 14% of its global workforce, citing the current crypto market downturn and a shift toward AI-driven operations.
The company said in an SEC filing that it expects to incur $50 million to $60 million in restructuring charges as it lays off about 700 employees. Almost all those costs are cash-based expenses tied to employee severance and termination benefits. Execution of the plan is expected to be complete in the second quarter of 2026, with most charges recognized in the same period, the company said.
Coinbase CEO Brian Armstrong described the decision as driven by two converging forces. The first is the crypto market pullback: “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,” Armstrong wrote in a memo to employees that he shared on X. The second is AI: “The pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day,” he said.
Armstrong also said Coinbase intends to rebuild as an “AI-native” company, according to CoinDesk. On severance, Armstrong outlined a tiered package for departing American employees: a floor of 16 weeks of base pay, with an additional two weeks added for each year spent at the company. International employees will be offered equivalent arrangements based on what local regulations require.
Coinbase stock was up almost 4% in premarket trading following the announcement.
The announcement is part of a broader contraction across crypto companies this year. Earlier in the spring, Algorand shed a quarter of its workforce, blaming macroeconomic uncertainty and weak conditions across digital asset markets. Gemini had already moved in a similar direction, starting with cuts of roughly 200 roles before the total reached around 30% of its staff by mid-March, according to CoinDesk. Crypto.com separately disclosed a 12% reduction, with its chief executive pointing to AI as a central reason.
Coinbase is not alone among tech companies in framing workforce reductions around AI. A broader pattern of white-collar layoffs has emerged across the tech industry, with companies including Oracle, Microsoft, and Amazon cutting corporate headcount while simultaneously ramping capital expenditure on AI infrastructure. Block cut almost half its workforce earlier this year, also pointing to AI as a rationale. The Crypto.com announcement reflected the same dynamic, with CEO Kris Marszalek saying companies that do not pivot to AI “will fail.”
Armstrong said Coinbase remains committed to crypto and reaffirmed a bullish outlook on stablecoins, tokenization, and prediction markets as drivers of the next wave of adoption.
