Coinbase announced a 14% reduction in its workforce on Tuesday, a decision by CEO Brian Armstrong described As preparation for what he called a “new way of working” based on artificial intelligence, rather than a defensive reaction to market conditions.
In a company-wide email, Armstrong pointed to two forces behind the move: continuing cryptocurrency market cycles and a shift in how artificial intelligence is changing the pace of internal business.
Engineers at Coinbase are using AI to ship what entire teams take weeks to complete in days, Armstrong wrote, and the pace of that transformation is accelerating, not plateauing.
Coinbase had 4,951 employees as of December 31, 2025, putting the number of affected workers at 693 people. Departing U.S. employees will receive at least 16 weeks of base pay, plus two weeks in each year of service, six subsequent stocks, and six months of COBRA health coverage.
Employees on work visas receive additional transition support. Access to the system was cut off on the day of the announcement – a practice that Armstrong admitted was harsh but defended as a matter of protecting customer data.
The cuts follow a pattern dating back to 2022. In June of that year, Coinbase Unlikely 18% of its workforce – 1,100 jobs – as cryptocurrency prices decline and recession fears grow. In January 2023, a second major cut of 20%, covering 950 employees, came in the wake of the FTX collapse and a prolonged market downturn. These two rounds reduced personnel numbers by more than 2,100 people. And each time, Armstrong laid pain as the foundation for stronger company on the other side.
Coinbase: Artificial Intelligence is changing our company
This round carries a structural argument that was not present in the previous two rounds. The cuts in 2022 and 2023 were market responses. The 2026 restructuring, in Armstrong’s framework, is an AI-driven redesign of how a company operates.
He fired engineers who refused to adopt tools like GitHub Copilot and Cursor after obtaining institutional licenses for both, and set a goal of 50% AI-written code at Coinbase.
The logic of current cuts extends this mandate: if AI increases the output of a small team, the large team becomes a drag on performance.
The organizational chart changes mentioned by Armstrong are wide-ranging. The company will flatten to no more than five layers under the CEO and COO. Each leader must take on the role of an active individual contributor – the “player-coach” model. Cross-functional “native AI modules” will replace traditional team structures, with experiments in one-person teams that combine engineering, design, and product responsibilities into a single role.
COIN shares are trading near $210 in pre-market trading, a fraction of the highs the stock reached in late 2024.
