Coinbase boss fires 700 workers in 6:55 a.m. email – Business News
Coinbase chief government Brian Armstrong knowledgeable workers in an early morning message Tuesday that the cryptocurrency exchange would eradicate roughly 14% of its workforce — about 700 jobs — because the company restructures round artificial intelligence.
Armstrong shared the memo publicly on social media shortly earlier than 7 a.m., telling workers the cuts had been crucial as AI quickly reshapes how work is completed throughout the tech industry.
The billionaire co-founder stated impacted workers would obtain extra particulars within the hour, although some workers later stated their entry to company systems had already been restricted by the time the email landed.
Coinbase CEO Brian Armstrong stated AI is permitting smaller groups to do work that after took weeks — because the crypto exchange cuts roughly 700 jobs. REUTERS
“I know this feels sudden and harsh,” Armstrong wrote, whereas describing the layoffs as a troublesome however crucial transfer tied to the company’s duty to safeguard buyer knowledge.
He maintained that Coinbase remained financially sturdy and positioned for future growth, however stated market pressures required the company to “rebuild Coinbase to be lean, fast, and AI-native.”
According to the CEO, engineers utilizing AI instruments are actually capable of full initiatives in days that beforehand took groups weeks to complete.
He added that nontechnical workers have began writing production-level code whereas automation more and more handles routine workflows.
Coinbase employed 4,951 workers on the finish of 2025, which means the cuts are anticipated to have an effect on roughly 700 workers.
Brian Armstrong warned workers in a 6:55 a.m. memo that Coinbase should change into “lean, fast, and AI-native” amid sweeping layoffs. Getty Images
Armstrong stated affected US-based workers would obtain at the very least 16 weeks of base pay, together with an extra two weeks for yearly labored, continued healthcare protection and their subsequent equity vest.
The CEO additionally outlined a sweeping cultural overhaul inside Coinbase, saying the company would flatten its organizational construction to no more than 5 layers under the CEO and COO.
Armstrong stated Coinbase plans to construct smaller, extremely centered “AI-native” groups succesful of shifting sooner and working with fewer workers.
Start your day with all you need to know
Morning Report delivers the newest information, videos, images and more.
Thanks for signing up!
He added that the company is experimenting with “one person teams,” the place engineers, designers and product managers might ultimately be consolidated into a single position.
Coinbase joins a growing listing of main technology corporations which have linked workforce reductions to the rise of artificial intelligence.
Oracle reportedly slashed hundreds of jobs earlier this yr because the cloud computing giant intensified its deal with AI.
Coinbase is the newest main tech company to slash jobs whereas citing artificial intelligence-driven productiveness good points. ZUMA Press Wire by way of Reuters Connect
Amazon has additionally shed giant numbers of company workers by means of a number of rounds of layoffs stretching from late 2025 into 2026. Executives there stated the aim was to cut back paperwork and streamline operations.
Meta lately launched one other vital wave of cuts affecting roughly 8,000 workers, or about 10% of its workforce, because the company redirected spending away from the metaverse and towards AI investments.
Other tech corporations together with Block and Atlassian have additionally introduced sizable layoffs whereas citing the need to prioritize artificial intelligence initiatives.
Armstrong stated the modifications at Coinbase would transcend staffing reductions.
This is an email I despatched earlier at this time to all workers at Coinbase:Team,Today I’ve made the troublesome resolution to cut back the scale of Coinbase by ~14%. I wish to stroll you thru why we’re doing this now, what it means for these affected, and how this positions us for the…— Brian Armstrong (@brian_armstrong) May 5, 2026
He wrote that he desires to essentially reshape how the company operates by flattening management layers, eliminating what he known as “pure managers,” and inspiring executives to operate more like hands-on “player-coaches.”
Coinbase was based in 2012 during the early days of cryptocurrency trading, when Bitcoin was valued at roughly $6.
The company later went public during the pandemic-era crypto frenzy, a period when Bitcoin costs surged dramatically and enthusiasm for digital belongings exploded.
Like a lot of the crypto industry, Coinbase has skilled sharp swings in fortune tied to volatility in digital currency markets.
Its valuation plunged after the post-pandemic crypto collapse, wiping out a lot of the company’s market worth earlier than rebounding as Bitcoin climbed to report highs final yr.
More lately, trading exercise has cooled whereas investor and industry consideration has more and more shifted towards artificial intelligence.
