Coinbase to cut about 14% of workforce in restructuring tied to AI push

Coinbase, the largest U.S. cryptocurrency exchange, said on Tuesday it will cut about 700 jobs, or roughly 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 U.S. companies at the start of the year as businesses cut expenses, simplify operations and adjust to the growing use of AI tools.

In a blog post, Coinbase said 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.

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 expected to be recognized in the second quarter. The company said additional charges could arise from unanticipated events tied to the restructuring.

Shares of Coinbase were up about 4% in premarket trading following the announcement. The company expects to complete the workforce reductions largely in the second quarter of 2026.

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.