- Coinbase will cut 14% of its global workforce.
- It joins the ranks of tech giants Meta and Microsoft.
- The stock price soared 4% on the news.
Coinbase just cut 700 jobs. But Wall Street likes what it sees.
coinbase stocks Popped Shares rose as much as 4% early Tuesday after the main U.S. cryptocurrency exchange announced it would cut about 14% of its global workforce in a major restructuring with a renewed focus on artificial intelligence.
CEO Brian Armstrong announced the news in an email to employees, citing two punishing factors: AI and a weak market, which is down about $1.5 trillion from its peak.
“Over the past year, I’ve seen engineers use AI to ship work in days that previously took teams weeks,” said Armstrong. I wrote He reposted this to X in an email. “Non-technical teams are now shipping the product code, and many workflows have been automated.”
“We are fundamentally changing the way we operate, which means rebuilding Coinbase as an intelligence, orchestrated by the people around us,” he added.
According to its 2025 financial report, Coinbase had 4,951 employees as of Dec. 31. Based on this figure, the exchange’s 14% layoff would affect 693 employees.
The move puts Coinbase in partnership with Meta, which is cutting about 10% of its workforce, and Microsoft, which is reducing its workforce through a voluntary severance program. Across many fast-growing technology companies, logic It was the same.
The exchange expects to incur $50 million to $60 million in restructuring charges, most of which will be recognized in the second quarter. Market reaction in early morning trading suggests investors view the latest rate cut as a long-awaited reset.
Armstrong said he wants no more than five levels of management below the CEO, leaders with up to 15 direct reports, and what he calls “AI-native pods,” or small, focused teams where one person can fill the roles of engineer, designer, and product manager.
“The future is small, high-context teams that can move quickly,” he said.
common story
This isn’t the first time Coinbase has encountered the axe.
Since its founding in 2012, the exchange has cut staff during each major crypto downturn, underscoring how tightly the company’s fortunes remain tied to the price of Bitcoin and the mood of the crypto market.
The current economic downturn has been particularly painful. Despite the S&P 500 hitting an all-time high in April, Bitcoin is still down 35% from its October 2025 high of $126,000.
“We are making early and intentional adjustments to rebuild Coinbase into a lean organization,” Armstrong said.
Lance Datukoruo is DL News’ Europe-based market correspondent. Any tips? send him an email lance@dlnews.com
