CEO Brian Armstrong has made this decision public. In a post on X, he explained that the layoffs are primarily due to two concerns: the bear market, and AI.
“Coinbase is well-capitalized, has diverse revenue streams, and is well-positioned to weather any storm,” he wrote. “However, our business is still volatile quarter-to-quarter […] “Right now we are in a recession and we need to adjust our cost structure.”
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Cryptocurrencies, including Bitcoin and Ethereum, are currently recovering after a sharp downturn that began late last year. The price of Bitcoin is currently around $81,400, down from a high of around $127,000 in August 2025.
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Armstrong also noted that AI is changing the way companies work. “In the past year, I’ve seen engineers use AI to ship in a matter of days what would have taken a team weeks (…) All of this has brought us to an inflection point not just for Coinbase, but for every company. The biggest risk now is not taking action,” he wrote.
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Affected workers will receive a “comprehensive package” that includes a minimum of 16 weeks of base pay for American workers (plus 2 weeks of work per year), their next equity vest, and 6 months of COBRA, Armstrong wrote.
Coinbase is scheduled to release its Q1 2026 earnings report on May 7. The company reported a big revenue decline last quarter, and analysts, for the most part, expect another weak quarter.
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