Crypto firm Coinbase laying off 14 pc of staff as AI changes work: CEO

New Delhi: Crypto exchange Coinbase on Tuesday said it is laying off 14 per cent of its staff as artificial intelligence (AI) is changing the way people work, to be lean, fast, and AI-native.

All impacted team members will receive an email to their personal account with more information, “and an invitation to meet with an HRBP and a senior leader in your organization”, said the company.

“Coinbase system access has been removed today. I know this feels sudden and harsh, but it is the only responsible choice given our duty to protect customer information,” said Coinbase CEO Brian Armstrong in an X post.

“Today I’ve made the difficult decision to reduce the size of Coinbase by 14 per cent. Two forces are converging at the same time. We need to be front footed to respond to both,” he wrote.

First, the market. The CEO said Coinbase is well-capitalised, has diversified revenue streams, and is well-positioned to weather any storm.

“However, our business is still volatile from quarter to quarter. While we’ve managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” said Armstrong.

Second, AI is changing how we work.

“Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day,” he noted.

He further stated that the company is adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native.

“We need to return to the speed and focus of our startup founding, with AI at our core,” the CEO added.

US employees will receive a minimum of 16 weeks base pay (plus 2 weeks per year worked), their next equity vest, and 6 months of COBRA benefits.

Employees on a work visa will get extra transition support. Those outside of the US will receive similar support, based on local factors and subject to any consultation requirements.

IANS