Coinbase Global (COIN) said Tuesday that it will lay off 700 employees in the coming weeks.
The move, which amounts to a 14% reduction in the crypto company’s workforce effective May 1, aims to manage operating expenses “in response to current market conditions” and “optimize the company’s operations for the AI era,” according to a regulatory filing.
“Two forces are converging at the same time,” CEO Brian Armstrong said of the shakeup in a social media post about X, adding, “We need to be on the front lines of responding to both.”
In addition to the cuts, Armstrong said Coinbase intends to have “no pure managers” and will reduce its organizational structure to a maximum of five layers between top executives and the company’s remaining 4,300 workers.
Coinbase shares rose 4% in premarket trading on Tuesday. The stock has fallen 10% since the beginning of January.
Coinbase stock has faced pressure so far this year as the cryptocurrency market has remained in decline since its October peak. The total market capitalization of digital assets has lost $1.6 trillion in value during that period, according to data from CoinMarketCap.
Coinbase also said it estimates total restructuring costs of between $50 million and $60 million, with “substantially all” of those costs coming from employee severance payments and other severance charges.
The company expects to recognize all expenses in its second-quarter earnings, although the timing could change.
Coinbase reports first-quarter earnings results Thursday afternoon. Analysts surveyed by Bloomberg expect the company to report a 50% drop in adjusted EBITDA from the first quarter of 2025.
David Hollerith covers the financial sector, ranging from the country’s largest banks to regional lenders, private equity firms and the cryptocurrency space.
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