Crypto exchange Coinbase to cut about 14% of workforce

Coinbase employee Daniel Huynh photographs outside the Nasdaq MarketSite, in New York's Times Square, Wednesday, April 14, 2021. (AP Photo/Richard Drew)

Coinbase said on Tuesday it will cut about 700 jobs, or about 14 per cent 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.

Shares of Coinbase were up about four per cent 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.

Coinbase expects to incur about US$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.

(Reporting by Prakhar Srivastava and Pragyan Kalita in Bengaluru; Editing by Shailesh Kuber)