Key Takeaways:
Crypto exchange Coinbase Global will cut 14% of its workforce, or around 700 employees, as it navigates a downturn in the digital asset market and shifts to become an AI-native company. The restructuring is expected to incur as much as $60 million in expenses, the company said in a filing.
"Two forces are converging at the same time," Brian Armstrong, Chief Executive Officer at Coinbase, said in a post on X. "We need to be front footed to respond to both." He added that the company needs to adjust its cost structure to emerge from the current down market leaner and more efficient.
The move comes after Coinbase's revenue tumbled 20% in the fourth quarter of last year, leading to a net loss of $667 million. The company's shares jumped as much as 8% in pre-market trading on the news. The layoffs are the latest in a series of workforce reductions across the crypto sector, with companies like Gemini, Crypto.com, and the Algorand Foundation also cutting staff in recent months.
The pivot to an AI-native structure will involve combining the responsibilities of engineers, designers, and product managers into single roles for some teams. This shift highlights a broader trend in the tech industry, where companies are increasingly looking to leverage AI to streamline operations and improve efficiency, even as it raises concerns about job displacement.
This article is for informational purposes only and does not constitute investment advice.
