Coinbase logo in Times Square, New York, April 2021. Coinbase stock fell 1.6% in early morning trading.Shannon Stapleton/Reuters
Coinbase’s COIN-Q announced Tuesday it will cut about 700 jobs, or about 14% of its global workforce, as it cuts costs amid cryptocurrency market volatility and repositions its business for the era of artificial intelligence.
The job cuts come as digital asset exchanges grapple with a slowdown in trading activity after crypto markets broadly retreated from their October peaks, reflecting more cautious investor sentiment.
“We see this move as supporting future profitability as volumes remain subdued and sentiment remains weak,” said Clear Street analyst Owen Lau.
In addition to cutting costs, Lau added, management is restructuring teams around AI-driven workflows, signaling a long-term drive to increase productivity per employee.
The company expects this exercise to be completed primarily in the second quarter of 2026 and will incur costs of approximately US$50 million to US$60 million, primarily related to severance and other employee benefits.
The company said it may incur additional costs due to unanticipated restructuring factors and expects the majority of costs to be incurred in the second quarter.
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Job cuts have spread across U.S. businesses since the beginning of the year as companies cut costs, streamlined operations and adapted to increased use of AI tools.
CEO Brian Armstrong cited rapid advances in artificial intelligence, saying new tools are enabling non-technical teams to ship code and automate tasks with small, focused teams.
Coinbase stock fell 1.6% in early morning trading.
“Coinbase’s layoffs reflect both the poor performance of the company’s stock and the decline in cryptocurrency trading volume,” said Nick Pucklin, co-founder of Coinbureau.
Pucklin said continued uncertainty surrounding stablecoin yields under the Clarity Act has hit sentiment hard, noting that stablecoins are an important part of Coinbase’s business.
Armstrong said in a blog post that Coinbase remains well-capitalized for long-term growth, but current market conditions require it to streamline its operations and become leaner for the next crypto cycle.
“(Trading) activity across digital asset exchanges slowed in April,” Jefferies analyst Daniel T. Fannon said in a note, adding that the weak start contributed to weaker momentum in the second quarter.
Coinbase said affected employees will receive a minimum of 16 weeks of base pay for U.S. employees, plus severance and transition support that includes two additional weeks of work per year, next stock vesting, six months of medical insurance, and more.
Coinbase has previously implemented a series of layoffs during the crypto market downturn, highlighting the sector’s sensitivity to trading activity and investor sentiment.
