Crypto exchange Coinbase will reduce its workforce by around 14%, as it moves to reshape operations around artificial intelligence and navigate a volatile market environment, co-founder and CEO Brian Armstrong said in a note to employees.

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Calling the decision “difficult,” Armstrong said the move is aimed at making the company “leaner, faster, and more efficient” as it prepares for the next phase of growth.

“Two forces are converging at the same time. We need to be front footed to respond to both,” he said, pointing to market volatility and rapid advances in AI as the key drivers behind the restructuring. 

Market pressure and AI disruption

Armstrong said while Coinbase remains “well-capitalised” and expects crypto adoption to grow, driven by areas such as stablecoins and tokenisation, the business continues to face cyclical swings.

“We’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” he said. 

At the same time, he underscored how artificial intelligence is reshaping productivity across teams.

“Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated,” Armstrong noted. 

He described the shift as an “inflection point” not just for Coinbase but for companies broadly, adding that “the biggest risk now is not taking action.”

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Shift to ‘AI-native’ organisation

Beyond layoffs, Coinbase is planning a deeper overhaul of how it operates, with a focus on flatter structures and AI-driven teams.

The company will reduce organisational layers to speed up decision-making and push leaders to take on broader responsibilities. “The future is small, high context teams that can move quickly,” Armstrong said. 

He also signalled a shift away from traditional management roles. “Every leader at Coinbase must also be a strong and active individual contributor. Managers should be like player-coaches,” he added. 

A key part of the strategy is building “AI-native pods,” small teams capable of leveraging AI tools to deliver outsized output. The company is even experimenting with “one person teams” where a single individual can handle engineering, product, and design functions. 

“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. 

Impact on employees

Armstrong acknowledged the human cost of the decision, saying affected employees would receive severance packages and transition support.

“I know there are real people behind these decisions… I am sincerely grateful for everything you've done,” he said. 

US employees will receive at least 16 weeks of base pay, along with additional benefits including equity vesting and healthcare support, while international employees will be offered similar packages based on local regulations. 

Long-term outlook intact

Despite the cuts, Armstrong maintained that Coinbase’s long-term outlook remains unchanged.

“Nothing has changed about the long term outlook of our company or industry,” he said, adding that the company’s mission of “increasing economic freedom” remains central. 

The move reflects a broader trend across the tech industry, where companies are rethinking workforce structures and doubling down on AI to drive efficiency and growth, even as macroeconomic uncertainty persists.