Cryptocurrency exchange Coinbase will reduce its workforce by approximately 14%. CEO Brian Armstrong explained that this decision is necessary to optimize costs and to more actively integrate artificial intelligence into operations.

This is an email I sent earlier today to all employees at Coinbase:

Team,

Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the…

— Brian Armstrong (@brian_armstrong) May 5, 2026

According to him, the company is adapting to market conditions. Even with sufficient capital, Coinbase aims to enhance operational efficiency in anticipation of the next growth phase in the industry.

The second reason for the layoffs is the advancement of AI: these technologies enable small teams to accomplish tasks that previously took weeks.

As part of the restructuring, the exchange will change its operational model:

  • limit the number of management levels to five;
  • require managers to participate in workflows alongside employees;
  • create AI divisions where one person can take on both engineering and design roles.

Laid-off employees in the U.S. will receive at least 16 weeks of severance pay and health insurance for six months. Their access to work systems was revoked immediately after the announcement to "protect customer data."

Armstrong emphasized that the company's mission remains unchanged, and these changes will help Coinbase make decisions more swiftly.

It’s worth noting that in April, Snap announced it would replace 1,000 employees with neural networks to save $500 million.