Coinbase, one of the world’s largest cryptocurrency exchanges, announced it will cut approximately 14% of its workforce, affecting roughly 700 positions, marking the latest major example of AI-driven restructuring in 2026.

CEO Brian Armstrong said in an internal memo that AI technology is fundamentally changing how the company operates. He outlined a future “small team” structure and plans to phase out “pure manager” roles, pushing employees to engage more directly with product and technical work.

Small Teams, Less Management

The layoffs span multiple departments, though engineering and core technical roles are expected to be less affected. Coinbase committed to providing severance pay, extended health insurance, and job placement support for affected employees. Armstrong described the move as a “structural adjustment for the future” rather than a short-term cost-cutting measure.

This marks another significant personnel adjustment for Coinbase since the 2022 crypto winter, when it cut over 1,000 employees. The difference this time is that the direct driver is rapid AI adoption, not market conditions.

Industry-Wide Shift

Industry analysts note that Coinbase’s decision reflects a broader shift in the crypto industry from labor-intensive to technology-intensive operations. As AI tools mature in customer service, compliance, and trade monitoring, workforce demand is systematically declining.

The restructuring comes as Coinbase continues to expand its product offerings, including growing its tokenization business on the Base blockchain and doubling its partnership with RWA tokenization platform Centrifuge.