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The largest American cryptocurrency exchange, Coinbase, has reduced its workforce by 14%, which equates to approximately 700 employees. The exchange attributed the layoffs to a business restructuring aimed at cost reduction and a “focus on artificial intelligence.”
Coinbase’s CEO, Brian Armstrong, stated on the social media platform X that the company’s business “remains unstable from quarter to quarter.” In the last quarter of the previous year, from October to December, the publicly traded Coinbase reported a net loss of $667 million, whereas the preceding quarter (July to September) had been profitable for the firm. The net profit for Coinbase for the entire last year was $1.26 billion, reflecting a 51% decrease compared to 2024.
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Armstrong explained that the prolonged bear market in the cryptocurrency sector has prompted the need to optimize expenses to ensure that “as we emerge from this period, the platform continues to operate effectively.” He assured that Coinbase possesses sufficient capital, has diverse revenue streams, and is well-prepared for any disruptions. Additionally, he noted the increasing popularity of stablecoins, prediction markets, and asset tokenization.
According to him, artificial intelligence has transformed the exchange’s team operations by automating certain workflows. The company plans to streamline its organizational structure to a maximum of five levels below the CEO to enhance efficiency and reduce costs.
In March, the Singapore-based cryptocurrency exchange Crypto.com laid off 12% of its staff, citing the automation of workflows through AI. In February, the company Gemini Space Station (GEMI) also announced a reduction of 200 positions, justifying the decision by replacing some employees with artificial intelligence.
