Coinbase Axes 14% of Staff Amid Bear Market Woes and AI Transformation

Crypto exchange Coinbase is laying off 14 percent of its workforce due to concerns over the bear market and AI, CEO Brian Armstrong announced in a post on X. The company's decision comes as the cryptocurrency market continues to recover from last year's downturn, with Bitcoin currently trading at around $81,400.

Armstrong explained that while Coinbase is 'well-capitalized' and has diversified revenue streams, it needs to adjust its cost structure due to the current down market. He also highlighted the impact of AI on the company's operations, stating that engineers have been using AI to complete tasks in days what used to take weeks.

The affected workers will receive a comprehensive package, including 16 weeks' base pay for U.S. employees (plus two weeks per year worked), their next equity vest, and six months of COBRA. Coinbase is set to release its Q1 2026 earnings report on May 7, which analysts expect to show another weak quarter.