Coinbase Lays Off 14% of Employees as A.I. Changes Work

Coinbase, the largest U.S. cryptocurrency exchange, plans to lay off about 14 percent of its workforce, or about 700 employees, due to cryptocurrency market volatility and the impact of artificial intelligence (A.I.) on how companies operate.
The restructuring will incur costs of approximately $50 million to $60 million in severance and other expenses.
Coinbase’s CEO, Brian Armstrong, cited A.I. as a reason for the layoffs, stating that it’s bringing a profound shift in company operations and that they need to leverage A.I. across all facets of their jobs.
The restructuring involves having smaller teams with both people managing A.I. agents and human managers working closely with their teams.
Coinbase is following other major tech companies in pointing to A.I. as a reason for job cuts; examples include Block, Meta, and Microsoft, all of which have recently laid off a significant portion of their workforce citing A.I. advancements.
Armstrong highlighted cryptocurrency market volatility as another reason to adjust the company’s cost structure during the down market.
Coinbase aims to become more lean, fast, and A.I.-native and will ultimately have fewer layers under top executives.
The changes are meant to position the company to move more quickly and efficiently in the face of evolving A.I. and market conditions.

You may have missed