Coinbase Cuts Staff as AI Changes the Game

Coinbase, the biggest U. S. crypto exchange, will let go of about 700 employees—roughly 14 percent of its workforce. The move comes as the company says artificial intelligence is speeding up work, making many tasks faster and less labor‑intensive. CEO Brian Armstrong told staff that the biggest danger is not acting early enough. He wants Coinbase to become leaner, quicker and more “AI‑native. ” Engineers now finish projects in days instead of weeks thanks to AI tools. As more tasks get automated, the company can operate with smaller teams and fewer managers. Armstrong also mentioned the unpredictable nature of cryptocurrency markets as a reason for cutting jobs. When trading slows, revenue drops and costs need to be trimmed.The company’s financials show a fourth‑quarter loss of $667 million and revenue that missed analysts’ expectations. Crypto trading fees, its main income source, have been lower recently. Armstrong plans to flatten management layers so that a few leaders will oversee larger groups of employees. Managers will act as “player‑coaches, ” and the company is experimenting with single‑person teams that combine engineering, design and product roles. Coinbase’s shift mirrors a broader trend: many tech firms are hiring less because AI boosts productivity. Companies like Meta, Oracle and Block have already announced thousands of layoffs this year. While Coinbase does not have a physical headquarters, it allows remote work and leases space in San Francisco. The stock fell slightly after the announcement.