Coinbase Global Inc. CEO Brian Armstrong has announced that the company will cut approximately 14% of its workforce, representing roughly 660 to 700 jobs. The cryptocurrency exchange is implementing these layoffs as part of a restructuring effort to trim costs, streamline operations, and manage expenses within volatile markets.
The company cited a combination of a crypto market downturn and the rapid adoption of artificial intelligence as primary drivers for the downsizing. Armstrong stated that the firm needs to leverage AI across every facet of its jobs to optimize for the artificial intelligence era. He noted that Coinbase is not just reducing headcount, but is fundamentally changing how it operates to improve efficiency.
The workforce reduction comes two days before the company reports the worst quarterly earnings in its history as a public company. However, Armstrong maintained that Coinbase remains well-capitalized and has diversified revenue streams, leaving the company well-positioned to weather any storm.