The cryptocurrency exchange Coinbase is planning to cut its workforce by about 15%, putting around 700 jobs at risk.
The decision comes as the company grapples with high staffing costs and the unpredictable nature of cryptocurrency prices.
Coinbase intends to shift its focus towards artificial intelligence (AI), encouraging its remaining employees to develop AI-related expertise.
CEO Brian Armstrong has stated his intent to reduce the number of managerial positions within the company.
“In the new structure, some teams may consist of just one person,” Armstrong noted. “The roles of engineers, designers, and product managers will be merged into a single function.”
The announcement reflects a broader trend in the cryptocurrency and payments sectors, which have witnessed significant downsizing in recent months.
Companies like Block Inc., Crypto.com, and Gemini Space Station Inc. have already implemented workforce reductions earlier this year.
Analyst Dan Dolev, quoted by Bloomberg, believes the “crypto winter”—a prolonged period of declining prices and negative market sentiment—is the real driver behind Coinbase’s cutbacks. “AI is merely a convenient justification,” he remarked.
