Coinbase says it will cut about 700 jobs, citing crypto swings and AI

In short: Coinbase says it will cut about 14% of its workforce, around 700 people, as it responds to a weak crypto market and shifts more work toward AI.

What happened

Coinbase, the largest cryptocurrency exchange in the US, said on May 5 that it plans to cut about 14% of its workforce. That is roughly 700 employees. The company said most of the cuts are expected in the second quarter of 2026.

CEO Brian Armstrong said the decision comes from two pressures happening at the same time. One is cryptocurrency market volatility, which means crypto prices can swing a lot and trading activity can slow down in a “down market.” The other is a push to “optimize” for the artificial intelligence era, which in plain terms means reorganizing so teams use AI tools more and the company needs fewer layers of management.

Coinbase also said it wants leaner teams and more staff with AI-related skills. Armstrong described an approach where very small groups, sometimes even a single person, might cover multiple roles like engineering, design, and product work. Coinbase expects up to $60 million in restructuring costs, which can include things like severance pay and other expenses tied to layoffs.

Why it matters

For regular people, this is another sign that crypto companies still hire and cut jobs in waves, depending on market conditions. It also shows how companies are using “AI” as part of their public explanation for reorganizing, even when observers say the main driver may simply be a slowdown in the business.

Source: NYTimes