Coinbase ($COIN) will cut about 14% of its workforce, or roughly 700 employees, as the crypto exchange restructures operations to reduce costs and prioritize artificial intelligence capabilities amid a downturn in digital asset markets.
- The layoffs will impact around 700 employees and are expected primarily in the second quarter.
- Coinbase plans to streamline operations and reduce management layers.
- The company aims to reorganize teams around AI-focused roles, with some positions combining engineering, design, and product responsibilities.
- Restructuring charges are expected to reach up to $60 million.
- CEO Brian Armstrong cited market volatility and advances in AI as key drivers of the changes.
- Coinbase reported a 20% revenue decline in the fourth quarter and a net loss of $667 million.
- Shares rose as much as 8% in pre-market trading following the announcement.
- PayPal ($PYPL) also announced job cuts as part of a broader cost-saving plan targeting $1.5 billion in savings.
Relevant Companies
- Coinbase ($COIN) – Reducing workforce and shifting toward AI-driven operations amid declining crypto market activity.
- PayPal ($PYPL) – Implementing cost cuts and workforce reductions as part of a turnaround strategy.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
