Coinbase layoffs will cut about 14% of the crypto exchange’s workforce as the company lowers costs in a down market and reorganises around AI.

The cuts were announced in a blog post by CEO Brian Armstrong, who linked the move to market volatility and changes in how teams work with AI.

Armstrong noted that Coinbase remains well-capitalised, but its business is still exposed to quarter-to-quarter swings.

The company is now adjusting its cost base as it navigates a down market.

Coinbase also plans to flatten its organisation to a maximum of five layers below the CEO and COO.

Leaders will be expected to manage larger teams while remaining active contributors.

The company will focus more on smaller AI-native teams, including experiments with one-person teams that combine product, design and engineering responsibilities.

Affected employees will lose access to Coinbase systems on the day of the announcement, a step Armstrong described as necessary to protect customer information.

US-based employees will receive at least 16 weeks of base pay, plus two weeks for each year of service, their next equity vest and six months of COBRA health coverage.

Employees on work visas will receive additional transition support, while staff outside the US will receive support based on local factors and consultation requirements.

Coinbase will provide more details on its expense outlook during its Q1 earnings call on Thursday.

Featured image: Edited by Fintech News Singapore, based on image by tahantanha10 via Magnific