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Coinbase, the U.S. cryptocurrency exchange, is cutting about 14% of its workforce as it restructures the company around an AI-focused operating model.
On May 5, Chief Executive Officer Brian Armstrong posted on X, formerly known as Twitter, an email to employees outlining the plan.
Armstrong cited two reasons for the cuts: volatile market conditions and rapid changes in AI technology. He wrote that the market remains highly volatile and that Coinbase needs to adjust its cost structure to become a more efficient organization.
He also said AI is fundamentally changing how work is done, creating an environment in which smaller teams can deliver results faster.
Coinbase said the restructuring will reduce layers in the organization, speed up decision-making and strengthen AI-based work systems. The plan also calls for scaling back a manager-heavy structure in favor of a more execution-focused organization.
"We are reorganizing the company to be leaner, faster and more AI-focused," Armstrong wrote. "The biggest risk is failing to adapt to change."
Coinbase said it will provide affected employees with compensation packages and aims to strengthen its foundation for growth through the AI-centered reorganization.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
