Crypto Firms Coinbase and 0G Labs Cut Staff Citing AI Efficiency Gains

Major cryptocurrency companies are implementing significant layoffs, attributing the cuts to advancements in artificial intelligence that enable smaller teams to handle more work. Coinbase, the largest U.S. crypto exchange, disclosed plans to reduce its workforce by approximately 14%, affecting about 700 employees.

The decision comes as the company shifts toward an AI-optimized structure, with executives noting that AI allows engineers to complete tasks in days rather than weeks. 0G Labs, a San Francisco-based startup building blockchains for AI agents, is also cutting about 25% of its staff.

The layoffs follow the company's embrace of AI to boost output, with internal communications emphasizing the need for employees to use AI daily to achieve up to 20 times their previous productivity. Both firms described the changes as steps toward becoming 'AI-native' organizations, focusing on technology rather than expanding headcount.

In the fourth quarter of 2025, the company reported total revenue of about $1.8 billion, falling short of analyst expectations, and a net loss of $667 million partly due to strategic investment losses. As of December, Coinbase employed more than 4,900 people and operates without a physical headquarters, allowing remote work.

For 0G Labs, the staff cuts align with its mission to scale AI infrastructure. The company, valued at $2 billion last year after raising $350 million in funding, had around 40 employees at the time. Its crypto token, $0G, has declined over 80% in price since launch, according to market data, though the firm did not link this directly to the layoffs.

“Every day, we talk about a world where AI agents handle the work humans shouldn't have to do. In February, fintech company Block reduced nearly half its workforce due to AI efficiencies, while other firms like Meta and Oracle have also announced thousands of layoffs this year. From January to March, tech companies reported 52,050 layoffs, a 40% increase from the same period last year, based on industry tracking. Advancements in AI, highlighted by events like the rapid adoption of tools during the holidays dubbed 'Claude Christmas,' have accelerated automation of tasks such as code generation. Companies are investing heavily in AI infrastructure, including new data centers and gadgets, which in turn prompts operational restructuring to prioritize efficiency. Coinbase is experimenting with new organizational models, such as reducing management layers and having leaders oversee larger teams of 15 or more. It is also testing 'one person teams' that combine roles like engineer, designer, and product manager. This shift aims to make the company leaner and faster in response to AI's transformative impact on work.”

Following the announcement, Coinbase's share price closed down more than 2% at $197.75 on Tuesday. The company generates most of its revenue from transaction fees, which have been affected by reduced trading volumes in the crypto market. 0G Labs, in a statement, acknowledged that layoff decisions are difficult but emphasized the real efficiencies gained from AI agents.

The startup positions itself as practicing what it builds, running on the same AI technology it provides to others.

“AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era.”

The layoffs at both firms underscore how AI is reshaping employment in high-tech industries, particularly in volatile sectors like cryptocurrency. While some experts question the extent of AI's role in these cuts, the trend shows companies adapting early to technological changes to remain competitive.

Startups like 0G Labs, previously noted for small teams among AI unicorns, are now further streamlining. This follows a period of rapid AI progress that has prompted similar actions across the industry, with predictions that more firms may follow suit.

Coinbase's move also involves cultural shifts, encouraging all employees to integrate AI into every facet of their jobs. The company's leadership views inaction as the greater risk, pushing for deliberate adjustments to build a more agile operation.