Coinbase Announces Broadest Staff Cuts Yet Amid AI-Driven Efficiency Efforts

Coinbase has become the latest cryptocurrency company to announce significant job cuts, with an estimated 660 employees set to lose their positions.

The news was shared by CEO Brian Armstrong in a recent X post, where he explained that the decision was made due to two key factors: negative market conditions and the impact of AI on the company's operations. The first factor is self-explanatory, with Armstrong stating that the current down market necessitates cost-cutting measures.

The second reason cited by Armstrong highlights the rapid advancements in artificial intelligence technology. He noted that engineers are now using AI to complete tasks at a much faster pace than before, with some projects being completed in days what would have previously taken weeks or even months.

In response to the layoffs, Coinbase has committed to providing its affected employees with a minimum of 16 weeks' base pay and two weeks' severance pay for every year they were employed by the company. This support will be provided under local law for those not based in the US.