Coinbase announced on May 5 it will cut roughly 700 jobs — about 14% of its global workforce — as part of a restructuring plan aimed at reducing costs and repositioning the company for the artificial intelligence era.
Shares of Coinbase were up about 4% in premarket trading following the announcement.
Restructuring details
The company expects to complete the layoffs largely within the second quarter of 2026, with total restructuring charges estimated at $50 million to $60 million, primarily tied to employee severance and termination benefits.
Coinbase said in a blog post it was well-capitalized and positioned for long-term growth, but that current market conditions required it to streamline operations so it could emerge leaner and more efficient ahead of the next cycle.
Armstrong’s AI rationale
CEO Brian Armstrong pointed to rapid advances in artificial intelligence as a key driver of the decision, stating that new tools were allowing non-technical teams to ship code and automate tasks that previously required larger headcounts.
Additional charges could arise from unanticipated events tied to the restructuring, the company noted.
A pattern of cuts
Coinbase has previously undertaken rounds of job cuts during downturns in the crypto market, underscoring the sector’s sensitivity to trading activity and investor sentiment.
