Crypto exchange Coinbase is laying off 14 percent of its workforce.
The decision has been made public by CEO Brian Armstrong. In a post on X, he explained that the layoffs are mainly due to two concerns: Bear market, and AI.
"Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm," he wrote. "However, our business is still volatile from quarter to quarter [...] we’re currently in a down market and need to adjust our cost structure."
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Cryptocurrencies, including Bitcoin and Ethereum, are currently recovering after a sharp downturn that started late last year. The price of Bitcoin is currently at about $81,400, down from its highs of about $127,000 in August 2025.
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Armstrong also explained that AI is changing how the company works. "Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks (...) all of this has led us to an inflection point, not just for Coinbase, but for every company. The biggest risk now is not taking action," he wrote.
Affected workers will get a "comprehensive package" which includes a minimum of 16 weeks base pay for U.S. workers (plus 2 weeks per year worked), their next equity vest, and 6 months of COBRA, wrote Armstrong.
Coinbase is scheduled to release its Q1 2026 earnings report on May 7. The company reported a big revenue decline last quarter, and analysts, for the most part, expect another weak quarter.