New York, May 5, 2026, 10:02 EDT
Coinbase Global announced Tuesday it’s cutting around 700 positions—about 14% of its workforce—as part of a restructuring drive aimed at slashing costs and repositioning the crypto exchange for the artificial intelligence era. AI software, the company noted, can handle tasks, write code, and assist with decisions that previously required more people. Coinbase expects to wrap up most of the plan by the second quarter, with estimated charges between $50 million and $60 million, mostly related to severance and termination benefits, according to a filing.
The timing isn’t great for crypto exchanges: when customer trading drops, so does revenue. “April trading activity across digital asset exchanges has slowed,” Jefferies analyst Daniel T. Fannon wrote in a note quoted by Reuters. That sluggish opening has already put a dent in the second quarter’s momentum. Reuters
This comes just two days ahead of Coinbase’s scheduled first-quarter earnings discussion. Early in New York, Coinbase shares edged up 0.5%, trading at $204.02—maintaining slim gains after news of the layoff plan surfaced.
Chief Executive Brian Armstrong told staffers the timing came down to pressure from both the market and AI. While Coinbase had plenty of capital, Armstrong wrote, its business stayed “volatile from quarter to quarter” and the company was “currently in a down market.” Coinbase
Armstrong flagged a notable change happening on the inside: engineers, he told staff, were now using AI to “ship in days what used to take a team weeks.” And it’s not just the tech folks—he said non-technical teams have also begun writing production code and automating workflows. That message, first sent to employees, was later posted publicly. The Times of India
Coinbase isn’t just slashing jobs. The company wants to strip down its org chart to five layers under the CEO and COO, push managers to take on hands-on work, and experiment with compact “AI-native pods”—teams focused on leveraging AI agents to handle more tasks with leaner crews. TechCrunch
Impacted U.S. staff are set for at least 16 weeks’ base salary, plus an extra two weeks for every year they’ve been with the company, as well as their next equity vesting and six months of COBRA coverage—the federal program that extends employer health benefits after leaving a job. Employees on visas get additional transition help. For non-U.S. workers, support comes in line with local laws, Armstrong said.
Coinbase isn’t the only one feeling the squeeze. Last week, Robinhood—a competitor with its own crypto arm—reported that crypto notional trading volumes on its app dropped 48% in the first quarter from a year earlier, landing at $24 billion. That’s despite a pickup in equities and options trading.
But there’s execution risk here. Coinbase warned that restructuring costs might end up higher or lower than planned, depending on local regulations, consultation requirements, and anything unexpected that crops up. The larger issue: can the company shave off enough costs without slowing down, especially if crypto trading picks up again before its AI-focused approach delivers?
Coinbase plans to break out more specifics on expenses during its first-quarter earnings call this Thursday. There’s a new twist for investors this time: Can AI genuinely make up for a leaner staff at a company whose fortunes still swing with crypto cycles?
