May 5 (Reuters) – Coinbase said on Tuesday it will cut about 700 jobs, or about 14% of its global workforce, as part of a restructuring plan aimed at reducing costs and repositioning the business for the artificial intelligence era.
The move comes as the crypto exchange navigates volatility in crypto markets.
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.
Coinbase said on Tuesday it will cut about 700 jobs, or about 14% of its global workforce, as part of a restructuring plan aimed at reducing costs and repositioning the business for the artificial intelligence era. REUTERS Brian Armstrong, CEO and Co-Founder of Coinbase, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, on May 2, 2022. REUTERS Shares of Coinbase were up about 4% in premarket trading.
The company expects to complete the exercise largely in the second quarter of 2026.
Coinbase said in a blog post it was well-capitalized and positioned for long-term growth, but added that current market conditions required it to streamline operations so it could emerge leaner and more efficient ahead of the next cycle.
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.
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Coinbase expects to incur about $50 million to $60 million in total restructuring expenses, mainly tied to employee severance and other termination benefits, with most of the charges to be recognized in the second quarter.
It also said additional charges could arise from unanticipated events tied to the restructuring.
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.
