Coinbase Lets Go of Workers to Spend More on AI as Crypto Stays Weak

This year, many workers at Coinbase faced an unexpected change when the company decided to let go of about 700 employees—around 14% of its team. The goal? Save money and shift focus toward using artificial intelligence to handle more tasks. But why now? The crypto market has been shrinking since prices dropped sharply after hitting record highs in late 2025. AI tools promise to handle jobs that used to need bigger groups, allowing smaller teams to get the same work done. CEO Brian Armstrong explained that two big trends—a weak crypto market and fast AI growth—are forcing the company to adapt quickly. Instead of waiting, Coinbase wants to trim costs now to stay lean and efficient for future growth. The layoffs will mostly happen in early 2026, costing the company around $50 to $60 million in fees like severance pay and benefits. U. S. workers getting cut will receive at least 16 weeks of salary plus extra pay based on how long they’ve worked there. Some might also get extended health insurance. Crypto as a whole has taken a big hit. Between October and May, the total value of all digital currencies dropped from $4. 3 trillion to $2. 8 trillion. Bitcoin prices have also fallen far from their highs. Lower trading activity means less money coming in, making cost cuts a must for exchanges that rely on fees from trades.Experts think these layoffs could help the company make more money in the long run. Instead of waiting for the market to bounce back, Coinbase is betting on AI to cut labor costs while boosting productivity. Analysts say similar moves are happening across tech as companies replace people with machines to save cash. Other crypto companies like Crypto. com are cutting staff too while adding AI tools. The tech world is struggling with the same problem—rising AI investments but slower revenue from trading. Even giants like Amazon and Meta have let workers go this year to focus on AI projects. Outside the crypto world, global issues like wars and financial instability are making markets jumpy. These uncertainties push prices up and down, adding more pressure on companies that depend on risky assets like crypto. Even well-funded firms like Coinbase admit they need to tighten up now to survive the rough patches. Coinbase isn’t new to this—it has cut jobs before during past crypto downturns. But this time, AI makes the strategy different. The goal isn’t just to wait out a bad market but to rebuild with smarter, smaller teams ready for whatever comes next.