Coinbase's AI-Driven Code Rewrite Replaces 1,200 Employees

Coinbase has undergone significant changes in its development process, shifting towards using AI to write over 95% of its code. According to Rob Witoff, Head of Platform Engineering, this adoption has more than doubled since February 2026 when the company estimated it at 40%. Currently, all employees use AI daily.

The level of automation varies depending on task complexity, with prototyping being fully automated and cryptography requiring manual work. Developers review every line of code while AI helps find vulnerabilities and verify mathematical calculations.

AI adoption has led to a reshaping of team structures, with groups of two to three senior engineers now handling tasks that once required 10 or more people. Most cuts hit junior developers, along with marketing, support, and compliance staff.

Coinbase is part of a broader wave of crypto layoffs driven by AI adoption, with companies like Crypto.com and Block citing AI efficiency as a reason for headcount reductions. The company aims to have AI agents do the work of 100,000 employees by 2030.