Crypto exchange Coinbase to cut about 14% of workforce
Brian Armstrong said smaller AI-driven teams and a weaker crypto market will reshape the company’s structure and cut operating costs.
- On Tuesday, Coinbase Global Inc announced plans to cut about 700 jobs, or about 14% of its global workforce, as part of a restructuring aimed at reducing costs and repositioning for the artificial intelligence era.
- CEO Brian Armstrong cited rapid advancements in artificial intelligence and market volatility as primary drivers, noting that new automation tools reduce the need for large headcounts.
- Coinbase expects to incur up to $60 million in restructuring expenses, primarily for severance, while shares rose about 4% in premarket trading following the announcement.
- To emerge leaner before the next market cycle, the company will streamline management layers and reorganize teams around AI-focused roles.
- Layoffs across the tech sector reflect broader trends as companies cut expenses and adjust to artificial intelligence tools, similar to PayPal's cost-saving plan targeting $1.5 billion in savings.
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Coinbase Cuts 700 Workers, Joins Tech Layoff Wave Driven by AI Adoption
Cryptocurrency exchange Coinbase is letting go of roughly 700 employees, citing the way artificial intelligence (AI) is “fundamentally changing” how the company operates. The cuts amount to about 14 percent of Coinbase’s workforce, CEO Brian Armstrong announced on May 5, saying AI has brought the company to “an inflection point.” In a company blog post, Armstrong said engineers can now use AI to complete in days tasks that once took a team weeks…
Coinbase Lays Off 14% of Employees as AI Changes Work
SAN FRANCISCO — Coinbase, the largest U.S. crypto exchange, said Tuesday that it planned to lay off about 14% of its workers amid volatility in the cryptocurrency market and as artificial intelligence changes how people work. The cuts affect about 700 of the company’s nearly 5,000 employees, Coinbase said in a corporate filing, and the restructuring will cost about $50 million to $60 million in severance payments, termination benefits and other …
Coinbase didn't just lay off 14% of its staff due to AI. It replaced managers with ‘player-coaches’ and turned its org chart upside down
“We are not just reducing headcount and cutting costs, we’re fundamentally changing how we operate,” CEO Brian Armstrong said.
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