Catenaa, Monday, May 11, 2026-Coinbase is reducing its workforce by about 14% as it restructures operations to become an AI-native company amid ongoing market volatility, CEO Brian Armstrong said last Tuesday.
The layoffs are expected to affect roughly 680 employees out of about 4,900 staff, based on company disclosures from late 2025. Armstrong said the exchange is acting early to lower costs and improve efficiency during a prolonged downturn in crypto markets.
Coinbase reported a net loss of $667 million in the fourth quarter of last year, reversing gains from the prior quarter. Full-year 2025 net income fell 51% from 2024 levels, underscoring pressure on trading activity and revenue streams.
Armstrong said the company is redesigning its structure around artificial intelligence, calling for a leaner organization with fewer management layers and greater reliance on automation tools. He said engineers are already using AI systems to shorten development cycles from weeks to days.
The company plans to transition toward a flatter structure with reduced managerial roles and increased emphasis on employees who can oversee AI-driven workflows. Armstrong described the shift as a move to rebuild Coinbase with intelligence systems integrated into core operations.
Coinbase is scheduled to release first-quarter earnings on May 7, which is expected to provide further insight into trading activity and cost management.
The layoffs reflect a broader trend across the crypto sector, where firms are reducing headcount while adopting AI tools to streamline operations. Other companies, including Crypto.com, Gemini, and Block Inc., have also announced workforce reductions in recent months.
Coinbase shares rose about 4% in pre-market trading Tuesday, suggesting investor focus remains on long-term efficiency gains despite near-term restructuring.
