Cryptocurrency exchange Coinbase has announced it will cut about 700 jobs, or about 14% of its workforce, in part because artificial intelligence is reshaping the way people work.
“The biggest risk right now is inaction. We are making early and intentional adjustments to rebuild Coinbase to be efficient, fast, and AI-native,” Coinbase CEO and co-founder Brian Armstrong said in an email to employees on Tuesday.
of emailAccording to articles posted on social media, engineers are now able to complete tasks in days instead of weeks with the help of AI. As more tasks are automated, companies can rely on smaller teams.
The company also cited other factors contributing to job losses, such as the volatility of the cryptocurrency business.
Founded in San Francisco, Coinbase is the largest cryptocurrency exchange in the United States. Millions of people use its platform to buy, sell, transfer, and store cryptocurrencies such as Bitcoin.
Coinbase is among the tech companies that are laying off employees and pointing out how AI is making employees more productive. Although some experts say the role AI has played has been overstated, advances in technology have also made it possible to generate code and automate other tasks. Companies are also increasing their investment in artificial intelligence, with some developing new AI-powered gadgets and building new data centers.
This year, companies like Block, Meta, and Oracle announced thousands of layoffs. From January to March, tech companies announced 52,050 layoffs, an increase of 40% from the same period last year, according to outplacement and executive coaching firm Challenger, Gray & Christmas.
Coinbase is also changing the way it operates, Armstrong told employees. Management will be cut, with some leaders overseeing more than 15 employees, according to his email. Managers work like “player-coaches” and are experimenting with “one-person teams,” where the roles of engineer, designer, and product manager are part of a single position.
“AI is driving profound changes in the way companies operate, and we are reinventing Coinbase to lead in this new era,” Armstrong told employees. “This is a new way of working, and we need to leverage AI in every aspect of our work.”
Coinbase primarily makes money from cryptocurrency trading fees, but trading activity has slowed. The company reported total sales of approximately $1.8 billion for the fourth quarter of 2025, which was lower than analysts expected. The company posted a net loss of $667 million in the quarter, which was due in part to losses on certain strategic investments.
Coinbase had more than 4,900 employees as of December, according to its website. The company rents office space in San Francisco, but allows employees to work remotely and does not have a physical headquarters.
Coinbase stock fell more than 2% on Tuesday to end at $197.75.
