Coinbase lays off 700 people as CEO says AI reduces need for staff

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Coinbase, a major cryptocurrency exchange, is cutting about 700 jobs. CEO Brian Armstrong announced the reduction, which affects around 14% of the company’s workforce, and explained that advancements in artificial intelligence played a significant role in the decision.

Hey everyone, just wanted to share what’s going on at the company. Basically, we’re adjusting to what’s happening in the market and, honestly, the huge impact AI is having on everything. It’s changing how we work as teams and how quickly we can get new stuff out there, so we’re adapting to stay competitive.

Today, I made the tough call to reduce Coinbase’s workforce by about 14%,” Armstrong announced. He explained that the company needs to cut costs now to become more streamlined, quicker, and more effective as it navigates this challenging time.

He explained the company was reducing staff partly due to the unpredictable nature of the cryptocurrency market, but also emphasized that Coinbase is still financially strong and expects to grow in the future.

AI makes weeks of work take “days”

Armstrong said a major factor behind the layoffs is the growing impact of AI at the company.

I sent an email to the Coinbase team today announcing a difficult decision: we’re reducing our workforce by approximately 14%. I wanted to explain the reasons behind this change, what it means for the employees who are impacted, and how it will set us up for future success.

— Brian Armstrong (@brian_armstrong) May 5, 2026

He noted that engineers are now able to deliver projects in days that previously took weeks, thanks to AI. He also mentioned that even teams without technical expertise are now creating working code, and many processes are being automated.

He said the company was at a crucial turning point, and that not embracing artificial intelligence was their biggest threat.

So, Coinbase is making some big changes. They’re basically streamlining things – getting rid of a bunch of managers and building smaller, more agile teams. The really interesting part? They’re aiming to build everything around AI, becoming an ‘AI-first’ company. As a gamer, that sounds like they’re trying to optimize everything for speed and efficiency, kinda like a well-tuned build!

Armstrong announced that employees who are impacted will receive severance benefits. These include at least 16 weeks of their regular pay for US employees, with additional pay based on how long they’ve worked at the company, stock options that become available, and help with healthcare coverage.

Recently, someone on X managed to convince an AI chatbot to send them nearly $200,000 in cryptocurrency.

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2026-05-05 15:48