Coinbase will lay off roughly 14% of its global workforce, chief executive Brian Armstrong announced on Tuesday, becoming the latest firm to cut workers while citing an increased reliance on AI.
Several companies have announced workforce shakeups as more firms rely on AI.
Los Angeles Times via Getty Images
Armstrong, in a post on X, wrote that Coinbase would reduce its global workforce by 14% as it faces a “down market,” noting AI was also “changing how we work” (Coinbase disclosed in a Securities and Exchange Commission filing the job cuts affect roughly 700 employees).
Armstrong said he watched the efficiency of “smaller, focused [teams]” increase “dramatically” as they rely more on AI, and that new tools allowed non-technical teams to ship code and automate tasks that previously required larger teams.
Coinbase anticipates up to $60 million in total restructuring expenses as it carries out employee severance and other termination benefits.
Shares of Coinbase rose 3.4% in premarket trading on Tuesday, adding to a 6.1% gain on Monday.
“In short: AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era,” Armstrong said, adding, “This is a new way of working, and we need to leverage AI across every facet of our jobs.”
Challenger, Gray & Christmas will report job cuts data for April on Thursday. The career services firm reported last month that 30,000 layoffs had been blamed on AI so far this year, after nearly 55,000 cuts were blamed on the technology in 2025. Andy Challenger, the firm’s workplace expert and chief revenue officer, said companies are “shifting budgets toward AI investments at the expense of jobs,” and while AI isn’t replacing jobs entirely, “it is costing jobs.”
More companies have referenced AI as they announce layoffs, with some firms citing increased productivity using the technology while relying on fewer staff. Some tech CEOs have warned that middle management and white-collar jobs are likely the most vulnerable positions as more companies adopt AI, including billionaire Anthropic CEO Dario Amodei, who warned the technology could wipe out half of all entry-level white-collar jobs. Other firms have cited AI in recent weeks among large-scale layoffs: Meta said it would cut roughly 8,000 workers last month as the tech giant invests heavily in AI, with other plans to utilize AI-assisted workers. Oracle said in March it would cut up to 30,000 employees as the Larry Ellison-led firm invests in AI infrastructure. Block, the financial tech firm founded by Jack Dorsey, cut more than 4,000 workers in February as it integrates AI and relies more on smaller, faster teams.
Scale AI CEO Jason Droege accused CEOs of using AI as an “excuse” to lay off workers and claimed fears surrounding the new technology are overblown. Droege said he believes AI is still too unreliable to make the important decisions that humans make at work, specifically, financial moves, and that employees are more at risk of being cut if they fail to learn to use AI properly in their jobs.
ForbesTech Companies Are Using AI As ‘Excuse’ To Layoff Workers, CEO SaysBy Mary Whitfill RoeloffsForbesMeta Cutting 10% Of Company In Push For ‘Efficiency’—As AI-Related Layoffs SoarBy Mary Whitfill Roeloffs
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