Coinbase cuts 14% of workforce, citing market slump and AI shift

Update May 5, 2026, 1:30 pm UTC: This article has been updated to add information from an SEC filing.

Coinbase will cut about 14% of its workforce, or roughly 700 jobs, as CEO Brian Armstrong moves to make the crypto exchange leaner and more focused on artificial intelligence.

Armstrong said in an email to employees that Coinbase is responding to two forces at once: a down market that pressured the company’s quarter-to-quarter business and rapid advances in AI that are changing how teams work. 

He said the company will flatten its organizational structure to a maximum of five layers below the CEO and chief operating officer, require leaders to act as “player-coaches” rather than pure managers and concentrate around smaller AI-native teams that can use automated tools to increase output.

“To those affected, we will be providing a comprehensive package to support you through this transition,” Armstrong said, saying that it will include at least 16 weeks of base pay for US employees, additional pay based on tenure, their next equity vest and six months of “COBRA” or the “Consolidated Omnibus Budget Reconciliation Act,” a US program that allows former employees to temporarily continue employer-sponsored health insurance coverage.

A Tuesday filing with the US Securities and Exchange Commission showed that Coinbase expects its restructuring plan to incur about $50 million to $60 million in expenses tied to severance and termination benefits. The company expects the plan to be substantially complete in the second quarter of 2026.

The cuts show Coinbase framing AI not only as a productivity tool, but as a reason to rethink staffing, management and team structure across one of the largest US crypto companies.

Source: Brian Armstrong

Crypto companies cut staff amid AI shift

Coinbase’s restructuring follows other workforce reductions across crypto companies in recent months, as firms respond to weaker market conditions, cost pressures and the growing use of AI in internal operations. 

In February, Gemini said that it planned to cut up to 200 jobs, or about 25% of its workforce, while exiting the UK, EU and Australia as part of a broader cost-reduction plan, according to Reuters. The cuts were expected to affect employees in the United States, Singapore and Europe and be completed in the first half of 2026.

Related: Most crypto investors believe Bitcoin is undervalued: Coinbase survey

In March, Crypto.com cut 12% of its workforce as it accelerated its AI push. The move affected about 180 employees based on the exchange’s listed headcount of around 1,500. The company said the layoffs were part of its plans to prioritize resources around key growth areas.

In the same month, the Algorand Foundation also cut 25% of its staff, citing macroeconomic uncertainty, weaker crypto prices and the rise of AI. 

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.