Coinbase Lays Off 14% of Workforce

Coinbase announced on Tuesday, May 5, 2026, that it will cut roughly 14% of its workforce, a move affecting about 700 jobs according to some reports and 660 employees in others. CEO Brian Armstrong shared a memo to employees on X early Tuesday, explaining the decision as necessary to position the firm for its next phase of growth while navigating the current downturn in the crypto market.

The company expects to complete the layoffs by the second quarter of 2026 and estimates it will incur $50 million to $60 million in restructuring costs.

As of the end of 2025, Coinbase had nearly 5,000 employees, according to a regulatory filing. U.S. employees will receive at least 16 weeks of base pay plus additional severance, equity vesting, and health coverage, Armstrong stated in the memo.

Coinbase shares were up nearly 4% in premarket trading on May 5, 2026, ahead of the company's scheduled first-quarter 2026 earnings report on Thursday. He attributed the cuts to two converging forces: the pullback in the crypto market requiring cost adjustments, and AI changing how the company operates by enabling smaller, more focused teams.

This is not the first time Coinbase has made significant cuts, having done so during the 2022 market decline.

Coinbase plans to flatten its structure to no more than five layers below the CEO, Armstrong announced. The company will eliminate roles for pure managers in favor of hands-on leaders and build AI-native teams, including some one-person pods. Armstrong stated the decision is necessary to make the firm leaner, faster, and more efficient for the next phase of growth.