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Coinbase to cut 700 jobs, citing volatility and AI
US crypto exchange Coinbase said on May 5 that it will cut about 700 jobs, or 14% of its workforce, citing market volatility and AI changes.
Chief executive Brian Armstrong said that the company is shifting toward smaller teams and reducing costs during the current crypto market pullback.
A regulatory filing said the layoffs are expected to be completed in the second quarter and result in charges of about US$50 million to US$60 million.
The cuts add to a wider round of tech layoffs tied to AI adoption and follow Coinbase’s major layoffs during the 2022 crypto downturn.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
Coinbase ties layoffs to AI-driven efficiency and softer markets
- New AI tools now let non-technical teams automate routine work and release software, wrote Brian Armstrong, CEO of Coinbase, in a memo on X 1.
- Coinbase framed the cuts as a step to come out leaner for the next growth period and said it still has enough cash and resources 1.
Crypto companies are following a wider tech pattern
- Coinbase is part of a broader trend among US companies that are trimming expenses and reshaping work around AI tools 1.
- The company has cut jobs in past market downturns, yet naming AI and fast progress in AI as a reason marks a change in how it explains restructuring 1.
- The shift suggests the crypto sector is maturing and borrowing the operating style of larger tech firms with more focus on long-term efficiency 1.
Recent Coinbase developments
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