Coinbase Cuts 700 Jobs as AI Drives 14% Workforce Reduction

Coinbase is cutting 700 employees, representing 14% of its workforce, after headcount grew 31% while revenue climbed just 9% in 2025. The company had 4,951 full-time employees at the end of 2025 before this round of cuts.

Armstrong told employees Coinbase needs to rebuild as "lean, fast, and AI-native." Engineers using AI are shipping in days what previously took teams weeks. Coinbase is flattening its organizational structure to a maximum of 5 layers below the CEO and COO, eliminating pure management roles and requiring all leaders to be strong individual contributors. The company is experimenting with one-person teams that combine engineering, design, and product responsibilities.

This marks the second major workforce reduction in less than three years. Coinbase cut roughly 1,100 employees—20% of staff—in June 2023 during the post-FTX market downturn.

Operating expenses surged 35% to ₱350.86 billion ($5.7 billion) for full-year 2025 while revenue growth lagged. Q4 2025 total revenue hit ₱110.8 billion ($1.8 billion), a 5% sequential decline, with transaction revenue down 6% and subscription and services revenue falling 3%. Operating expenses jumped 9% to $1.5 billion in Q4 alone.

Coinbase filed its restructuring plan with the SEC on May 5, stating the cuts are designed to manage operating expenses under current market conditions and optimize operations for the AI era. The company is positioning for growth in stablecoins, prediction markets, and tokenization—areas where it now has 12 products generating more than $100 million in annualized revenue.

US employees will receive 16 weeks of base pay as severance plus 2 additional weeks per year worked, along with 6 months of COBRA coverage. The company cut system access immediately, citing its duty to protect customer information. Coinbase reports Q1 2026 earnings on May 7, with guidance pointing to subscription and services revenue between $550 million and $630 million.