Amid changing market conditions and rapid advances in technology, crypto exchange Coinbase has announced a major workforce reduction as part of its strategy to become more efficient and future-ready.
The company said it will cut around 700 jobs, accounting for about 14 per cent of its global workforce. The decision is part of a broader restructuring plan aimed at reducing costs and repositioning the business for the artificial intelligence era.
The move comes as the company deals with volatility in crypto markets. Job cuts have also been seen across U.S. companies this year, as firms look to lower expenses, simplify operations and adapt to the growing use of AI tools.
Shares of Coinbase rose about 4 per cent in premarket trading following the announcement. The company expects the restructuring process to be largely completed in the second quarter of 2026.
In a blog post, Coinbase said it remains well-capitalised and focused on long-term growth. However, it noted that current market conditions require it to streamline operations so it can emerge leaner and more efficient ahead of the next growth cycle.
CEO Brian Armstrong highlighted the impact of artificial intelligence, stating that new tools are enabling non-technical teams to deliver code and automate tasks that earlier required larger teams.
The company expects to incur restructuring costs between $50 million and $60 million. These expenses are mainly related to employee severance and other termination benefits, with most charges expected in the second quarter. It also mentioned that additional costs could arise due to unexpected developments during the process.
Coinbase has carried out job cuts in the past during downturns in the crypto market, reflecting how the sector is closely tied to trading activity and investor sentiment.
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