Crypto exchange Coinbase (COIN) is reducing its workforce by roughly 14%, as the Nasdaq-listed firm navigates a market downturn and shifts to AI-native operations.
Coinbase CEO Brian Armstrong confirmed the layoffs on X, saying that the company's business remains "volatile" from quarter to quarter, and that AI has changed how the team works.
"We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native," said Armstrong. "We need to return to the speed and focus of our startup founding, with AI at our core."
According to its investor relations website, the company had about 4,900 employees at the end of 2025, suggesting that the latest layoffs would affect approximately 680 employees.
"[We're] currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth," said Armstrong.
Coinbase posted a net loss of $667 million in the fourth quarter of last year, compared with a profit in the prior quarter. It reported a net income of $1.26 billion for the full year of 2025, down 51% from 2024.
Coinbase is scheduled to release its first-quarter earnings on May 7.
AI shift
A key driver behind the restructuring was the company's push toward AI-native operations. Armstrong noted that he is "rebuilding Coinbase as an intelligence, with humans around the edge aligning it."
Armstrong said the company will move toward a flatter organizational structure, with "no pure managers." It will also concentrate on talent capable of managing fleets of AI agents to drive impact.
"Over the past year, I've watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated," Armstrong added.
Coinbase's cuts add to a broader wave of layoffs across the crypto industry. Crypto.com announced a 12% staff reduction in March, with the company "joining the list of companies integrating enterprise-wide AI."
Gemini also said in February it plans to cut up to 200 roles, while Jack Dorsey's Block Inc. cut roughly 40% of its workforce in the same month.
Coinbase's stock is up 4% at $211 in pre-market trading on Tuesday, according to The Block's COIN price page.