Synopsis
Coinbase is slashing approximately 700 jobs, around 14% of its global staff, as part of a major restructuring. This move aims to cut costs and prepare the crypto exchange for the AI era. The company anticipates completing these layoffs mostly by the second quarter of 2026.Listen to this article in summarized format
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The layoffs come as digital asset exchanges grapple with a slowdown in trading activity following a broader pullback in crypto markets from their October peak, reflecting more cautious investor sentiment.
Shares of Coinbase were up about 3.3% in premarket trading.
The company expects to complete the exercise largely in the second quarter of 2026 and to incur charges of about $50 million to $60 million, primarily related to severance and other employee benefits.
It added that additional costs could arise from unforeseen factors tied to the restructuring.
Most of the charges will be recognized in the second quarter, the company said.
Layoffs have been widespread across US companies at the start of the year, as businesses cut expenses, simplify operations and adjust to the growing use of AI tools.
CEO Brian Armstrong also cited rapid advances in artificial intelligence, saying new tools were allowing non-technical teams to ship code and automate tasks that previously required larger headcounts.
Coinbase remained well-capitalised and positioned for long-term growth, but current market conditions required it to streamline operations and emerge leaner ahead of the next crypto cycle, Armstrong said in a blog post.
"April (trading) activity across digital asset exchanges has slowed," Jefferies analyst Daniel T. Fannon said in a note, adding that the weak start had set the second quarter on a softer footing.
Coinbase said affected employees will receive severance and transition support, including a minimum of 16 weeks of base pay for U.S. staff, and an additional two weeks per year of service, their next equity vesting and six months of healthcare coverage.
Employees on work visas will receive additional assistance, while staff outside the U.S. will be offered similar support in line with local regulations, the company said.
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.
