Coinbase to lay off 14% of staff as part of broader restructuring
Coinbase is laying off approximately 700 employees, or 14% of its workforce, as part of a restructuring to adapt to crypto market volatility and integrate AI tools more effectively. The company plans to flatten its organizational structure to five layers below the CEO and COO and will experiment with small, AI-powered teams, including one-person teams. Severance costs are expected to range between $50 million and $60 million, according to an SEC filing.
- ▪Coinbase is cutting 14% of its staff, amounting to about 700 employees, due to market volatility and efficiency initiatives.
- ▪The restructuring includes reducing organizational layers and allowing managers to have more than 15 direct reports.
- ▪CEO Brian Armstrong emphasized the transformative impact of AI on productivity, noting engineers now complete in days what previously took weeks.
- ▪The company will experiment with one-person teams combining engineering, design, and product management roles.
- ▪Coinbase expects to incur $50 million to $60 million in severance costs related to the layoffs.
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Crypto exchange Coinbase said on Tuesday it is laying off about 700 employees, or 14% of its staff, as part of a broader restructuring aimed at addressing market volatility and increasing the use of AI tools to improve efficiency. The restructuring would see the company flattening its organizational structures to just five layers below the CEO and COO levels, according to an internal email that the company’s CEO Brian Armstrong posted on the company blog. The reorg would implement new requirements for managers to contribute more, and leaders could now have more than 15 direct reports. The company is also focusing on putting together small teams that use AI tools, and will experiment with “one-person teams” that would combine engineering, design and product management roles.
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