Coinbase, the largest U.S. cryptocurrency exchange, announced plans to cut approximately 14 percent of its workforce, affecting about 700 employees out of nearly 5,000 workers. The company cited ongoing volatility in the crypto market and the need to adapt to artificial intelligence as key reasons for the restructuring. The layoffs will cost between $50 million to $60 million in severance and termination benefits, according to a corporate filing.

CEO Brian Armstrong said in a social media post that AI is bringing "a profound shift in how companies operate." He described the move as making Coinbase "lean, fast, and AI-native," with smaller teams managing AI agents alongside human workers. The company joins a wave of tech firms cutting staff—Block laid off 40 percent in February citing AI advances, and Meta announced plans to eliminate 10 percent of its workforce.

Founded in San Francisco in 2012 and went public in 2021, Coinbase acknowledged its revenue depends heavily on crypto asset prices and trading volumes. Armstrong framed the cuts as necessary to navigate what he called an "inflection point" driven by AI, emphasizing the need to act decisively now rather than risk falling behind in the rapidly evolving technological landscape.