Coinbase latest crypto firm to slash staff citing market conditions and AI shift. Reduces it by 14%.

Coinbase is set to slashing its workforce by roughly 14%, or 660 employees in response to negative market conditions and AI challenges.

CEO Brian Armstrong announced the cuts in an X post on Tuesday, citing the “two forces” that converged in his firms decision to slash staff.

Coinbase has more than 4,700 employees, according to its website, so 14% would be equivalent to around 660.

“While we‘ve managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” said the CEO of the Nasdaq-listed company.

The second reason is AI, and how it is changing the way Coinbase operates, he said. “Over the past year, I‘ve watched engineers use AI to ship in days what used to take a team weeks,” Armstrong stated, adding that “the pace of what’s possible with a small, focused team has changed dramatically, and its accelerating every day.”

The Coinbase CEO said that employees laid off in the U.S. will receive a minimum of 16 weeks base pay, plus 2 weeks of severance pay for every year they were employed by the company. He also said that those not in the U.S. would receive similar support under local law.

“Over the past 13 years, we have weathered four crypto winters, gone public, and built the most trusted platform in our industry,” he said.

A wave of crypto layoffs this year has highlighted the gap between two convenient narratives: macro headwinds and AI transformation. Algorand cut its staff by 25% in late March, citing “the uncertain global macro environment” and a broader crypto downturn. Gemini Space Station (GEMI) said it would eliminate roughly 200 positions in February, about a quarter of its staff, a figure that had grown to 30% by mid-March. On Thursday, Crypto.com said it is trimming 12% of its workforce, about 180 roles.

All but Algorand pointed directly to macro conditions, weak token prices and a pivot toward greater use of AI in the workflow.