Coinbase is slashing its workforce by 14% just two days ahead of its next earnings report, citing a need to manage costs amid ongoing market volatility and advances in artificial intelligence. Chief executive Brian Armstrong said on Tuesday that AI was speeding up certain processes, meaning fewer employees were required to run the business, with plans to concentrate remaining staff depending on their AI abilities.
The plan will see roughly 700 jobs cut from its global workforce, with the company expecting the implementation to be completed in the second quarter of the 2026 financial year. In a post on X, Armstrong said: “Over the past year I’ve watched engineers use AI to ship in days what used to take a team weeks… many of our workflows are being automated. The pace of what’s possible with a small, focused team has changed dramatically and it’s accelerating every day.”
As part of creating an AI-focused team, Armstrong also noted the company would be “experimenting” with one-person teams, meaning a lone staff member will act as engineers, designers and product managers. The cuts also mark Coinbase as the latest business to do so because of AI, following the likes of Meta, Crypto.com and Snap, who all blamed advancing technology.
State of the Market
Armstrong also voiced concerns surrounding market uncertainty, warning the company is “still volatile from quarter to quarter”. While crypto is hovering on the next stage of adoption on the back of the rise of stablecoins, prediction markets and tokenisation, the market is currently stuck in a downturn, with the US-listed company not immune. The digital currency has been suffering from ongoing geopolitical uncertainty, particularly the Iran war, which has prompted investors to turn away from speculative assets in a bid to offset risks.
The Federal Reserve’s hawkish stance has also caused an impact, as high interest rates and no imminent plans for a cut have reduced liquidity, despite bullish support from the US government. The price of Bitcoin has declined 13.9% over the past year, falling from record highs of $126,198 in October 2025. But investors and analysts are cautiously optimistic as the asset has recovered to the $80,000 mark for the first time since January. Armstrong said the company must “adjust our cost structure now so that we emerge from this period leaner, faster and more efficient for our next phase of growth”.
Coinbase Performance
Coinbase expects to record roughly $50m to $60m in restructuring charges, largely tied to severance and termination benefits, but the company cautioned that total costs and the timing of the plan may vary. Shares jumped 6.1% in pre-market trading following news of the job cuts to $202.99, but shares are down 14.8% since the start of the year. The company’s last quarterly report showed a 5% decline in revenue quarter on quarter to $1.7bn, with a net loss of $666.7m. But the company is increasingly powerful in Washington, where it has sought to shape digital asset policies under the crypto-friendly Trump administration. Armstrong’s power over policy was made evident last year when a Senate discussion on crypto legislation was delayed after he publicly pulled his support for it.
