Coinbase announces layoffs of about 14%, accelerating the transition to an "AI-native" organization

BlockBeats News, May 5th, Coinbase CEO Brian Armstrong announced in an internal letter that Coinbase will lay off approximately 14% of its staff to address market fluctuations and organizational changes brought about by AI technology.

Armstrong stated that the current cryptocurrency market still experiences cyclical fluctuations, and the company needs to proactively adjust its cost structure to remain lean and efficient during downturns. At the same time, AI is significantly changing the way work is done, with engineering and non-technical teams both able to greatly improve productivity through AI, pushing the company toward a smaller, more efficient operational model.

According to the plan, Coinbase will reduce its organizational layers to a maximum of 5 levels, cut pure management positions, and require managers to have actual output capabilities. The company will also focus on building “AI-native teams” to explore smaller-scale or even “single-person team” operational models.

For affected employees, the company will provide compensation packages, including at least 16 weeks of base salary (plus seniority-based compensation), equity vesting, and medical support. Armstrong pointed out that this move aims to reshape Coinbase into a leaner, faster organization centered around AI to compete in the new industry phase.