Crypto exchange Coinbase to cut about 14% of workforce
Coinbase Announces Major Layoffs Amid Market Volatility and AI Shift
Restructuring Plan and Workforce Reduction
May 5 (Reuters) - Coinbase said on Tuesday it will cut about 700 jobs, or about 14% of its global workforce, as part of a restructuring plan aimed at reducing costs and repositioning the business for the artificial intelligence era.
Industry-Wide Layoffs and Market Conditions
The move comes as the crypto exchange navigates volatility in crypto markets. Layoffs have been widespread across U.S. companies at the start of the year, as businesses cut expenses, simplify operations and adjust to the growing use of AI tools.
Market Reaction
Shares of Coinbase were up about 4% in premarket trading.
Timeline and Financial Impact
Completion Schedule
The company expects to complete the exercise largely in the second quarter of 2026.
Financial Position and Strategy
Coinbase said in a blog post it was well-capitalised and positioned for long-term growth, but added that current market conditions required it to streamline operations so it could emerge leaner and more efficient ahead of the next cycle.
Role of Artificial Intelligence in Restructuring
CEO Brian Armstrong also cited rapid advances in artificial intelligence, saying new tools were allowing non-technical teams to ship code and automate tasks that previously required larger headcounts.
Restructuring Expenses
Coinbase expects to incur about $50 million to $60 million in total restructuring expenses, mainly tied to employee severance and other termination benefits, with most of the charges to be recognized in the second quarter.
It also said additional charges could arise from unanticipated events tied to the restructuring.
Previous Layoffs and Sector Sensitivity
Coinbase has previously undertaken rounds of job cuts during downturns in the crypto market, underscoring the sector's sensitivity to trading activity and investor sentiment.
(Reporting by Prakhar Srivastava and Pragyan Kalita in Bengaluru; Editing by Shailesh Kuber)
