Hundreds of jobs cut at Coinbase as AI takes on more…

Coinbase is cutting roughly 700 jobs — about 14% of its workforce — as it restructures the business to cope with a volatile crypto market while doubling down on artificial intelligence to drive efficiency.The layoffs form part of a broader overhaul that aims to simplify the company’s organisational structure and accelerate decision-making. In an internal email, CEO Brian Armstrong outlined plans to reduce management layers, capping the hierarchy at five levels below the CEO and COO. Managers will also be expected to take on a more hands-on role, with some overseeing larger teams of more than 15 direct reports.Coinbase is reorganising teams into smaller, more agile units built around AI tools, with experiments underway on so-called “one-person teams” that combine engineering, design and product responsibilities. The idea is less about replacing humans outright and more about amplifying what smaller groups can achieve when aided by automation.Armstrong pointed to the increasingly cyclical nature of the crypto market as a key driver behind the decision. The company, he noted, has weathered downturns before, but the current environment demands tighter cost control. Coinbase expects to incur between $50 million and $60 million in severance-related expenses as part of the cuts, according to a regulatory filing.The bigger story, though, is not just cost-cutting — it’s how AI is beginning to reshape the way tech companies operate internally. Armstrong highlighted how engineers are now able to ship in days what previously took weeks, while non-technical staff are increasingly capable of producing production-level code. Many workflows, he added, are being automated altogether.That shift is prompting a rethink of team structures across the organisation. Rather than large, specialised groups, Coinbase is betting on compact, cross-functional teams that can move quickly and iterate faster. The emphasis is on speed, flexibility and output per employee — metrics that become more critical when markets are unpredictable.There is a certain irony here. Crypto, long pitched as a decentralised alternative to traditional systems, is now pushing one of its biggest companies towards a more centralised, tightly controlled cost structure — albeit powered by decentralised tools like AI.The immediate impact for employees is more tangible. The layoffs are another reminder of how quickly fortunes can turn in the crypto sector, where boom-and-bust cycles are the norm rather than the exception.