Coinbase cut 14% of its workforce — 693 employees — by the end of 2025. It's the exchange's third major reduction in three years, but CEO Brian Armstrong framed this one differently: this is about preparing for an AI-driven transformation, not reacting to a market crash.
The AI mandate
Armstrong is pushing the remaining staff toward a future where half the company's code is written by AI. Engineers who refused to adopt tools like GitHub Copilot were let go. The company is reorganizing into 'AI-native pods' — one-person teams that handle engineering, design, and product roles. The org chart is flattening to just five leadership layers below the CEO and COO. And every leader, from team leads on up, must stay an active individual contributor — a 'player-coach' role.
What laid-off workers get
Severance includes 16 weeks of base pay plus two weeks per year of service, with the next equity vest paid out. U.S. employees get six months of COBRA coverage. The company is offering extra visa transition support for affected international workers.
Not the first round
Coinbase laid off 18% of staff (1,100 people) in June 2022 and another 20% (950) in January 2023. Both rounds were tied directly to the crypto bear market and the fallout from FTX's collapse. This time, Armstrong is explicit that market conditions aren't the driver — it's a bet on AI efficiency. Still, the timing isn't great. COIN shares traded near $210 pre-market, well below the highs hit in 2024.
What comes next
The company hasn't given a timeline for when the AI-first structure will show results. The next quarterly earnings report will be the first real test of whether this bet on AI-native pods and machine-written code actually pays off.
