Coinbase layoffs cut 14% of staff amid crypto downturn, AI shift

Coinbase disclosed plans to chopped astir 700 employees — astir 14% of its planetary workforce — citing the existent crypto marketplace downturn and a displacement toward AI-driven operations, according to an SEC filing dated May 5, 2026.

The institution expects to incur $50 cardinal to $60 cardinal successful restructuring charges, substantially each of which are cash-based expenses tied to worker severance and termination benefits. Execution of the program is expected to beryllium implicit successful the 2nd 4th of 2026, with astir charges recognized successful the aforesaid period, the institution said.

CEO Brian Armstrong described the determination arsenic driven by 2 converging forces, according to CNBC. The archetypal is the crypto marketplace pullback: "We're presently successful a down marketplace and request to set our outgo operation present truthful that we look from this play leaner, faster, and much businesslike for our adjacent signifier of growth," Armstrong wrote successful a memo to employees that helium shared connected X. The 2nd is AI: "The gait of what's imaginable with a small, focused squad has changed dramatically, and it's accelerating each day," helium said.

Armstrong besides said Coinbase intends to rebuild arsenic an "AI-native" company, according to CoinDesk. On severance, Armstrong outlined a tiered bundle for departing American employees: a level of 16 weeks of basal pay, with an further 2 weeks added for each twelvemonth spent astatine the company. International employees volition beryllium offered equivalent arrangements based connected what section regulations require.

Coinbase banal was up astir 4% successful premarket trading pursuing the announcement, according to CNBC.

The announcement is portion of a broader contraction crossed crypto companies this year. Earlier successful the spring, Algorand shed a 4th of its workforce, blaming macroeconomic uncertainty and anemic conditions crossed integer plus markets. Gemini had already moved successful a akin direction, starting with cuts of astir 200 roles earlier the full reached astir 30% of its unit by mid-March, according to CoinDesk. Crypto.com separately disclosed a 12% reduction, with its main enforcement pointing to AI arsenic a cardinal reason.

Coinbase is not unsocial among tech companies successful framing workforce reductions astir AI. A broader signifier of white-collar layoffs has emerged crossed the tech industry, with companies including Oracle, Microsoft, and Amazon cutting firm headcount portion simultaneously ramping superior expenditure connected AI infrastructure. Block chopped astir fractional its workforce earlier this year, besides pointing to AI arsenic a rationale. The Crypto.com announcement reflected the aforesaid dynamic, with CEO Kris Marszalek saying companies that bash not pivot to AI "will fail."