Coinbase to cut about 14% of workforce in AI-driven restructuring

Published: 2026-05-05 14:04:22 ET COIN

Published on 05/05/2026 at 02:04 pm EDT - Modified on 05/05/2026 at 02:05 pm EDT

STORY: Coinbase on Tuesday said it's cutting about 700 jobs, or roughly 14% of its workforce, as the crypto exchange trims costs and retools its business for the AI era.

:: Coinbase

The layoffs come amid a slowdown in crypto trading after digital assets retreated from their October highs, as investors grow more cautious.

That wariness was evident in Tuesday's session, with shares of Coinbase sinking as much as three and a half percent in morning trading, after initially gaining on news of the restructuring.

:: Coinbase

CEO Brian Armstrong, who shared his internal memo about the job cuts on X, said volatile markets and the speed of AI have led the company to "an inflection point," adding that "The biggest risk now is not taking action."

:: Archive

Layoffs have been widespread across U.S. companies at the start of the year, as businesses cut expenses, simplify operations and adjust to the growing use of AI tools.

:: Coinbase

Coinbase said affected U.S. employees will receive a minimum of 16 weeks of base pay, and an additional two weeks per year of service, their next equity vesting and six months of healthcare coverage.

As a result, the crypto exchange expects to incur charges of about $50 million to $60 million, primarily related to severance and other employee benefits.