Coinbase to cut 14% jobs as AI adoption grows

Crypto exchange Coinbase has announced plans to reduce its global workforce by around 14%, affecting nearly 700 employees, reported Reuters. The company says the move is part of a wider restructuring effort to cut costs and prepare for the growing use of artificial intelligence in its operations.

JOB CUTS AMID MARKET PRESSURE

Coinbase said the decision comes at a time when the crypto market remains unpredictable. Like many tech firms, it is also trying to reduce expenses and simplify operations after a period of rapid expansion.

The layoffs are expected to be largely completed by the second quarter of 2026.

FOCUS ON EFFICIENCY AND AI

In a statement, the company said it remains well-funded and confident about long-term growth. However, it also admitted that current market conditions require it to operate in a more efficient and streamlined way.

Chief Executive Officer Brian Armstrong highlighted that artificial intelligence (AI) is changing how work is done inside the company. He said new AI tools are helping teams automate tasks and allowing even non-technical staff to contribute to software development.

COST IMPACT OF RESTRUCTURING

Coinbase expects to spend between $50 million and $60 million on restructuring costs. This includes severance payments and other benefits for affected employees. Most of these expenses will be recorded in the second quarter.

The company also noted that additional costs may arise depending on how the restructuring process unfolds.

This is not the first time Coinbase has reduced its workforce. The company has previously carried out job cuts during downturns in the crypto market, reflecting how closely the sector is linked to trading activity and investor sentiment.

INDUSTRY-WIDE TREND

The move also comes as several US companies continue to trim jobs at the start of the year. Many firms are focusing on cost control, operational efficiency, and adapting to new AI-driven workflows.

Meanwhile, Coinbase says the restructuring is aimed at making the business leaner and better prepared for the next phase of growth in the crypto industry.

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