Brian Armstrong, CEO of Coinbase, published a letter to employees on May 5 announcing that the company will cut approximately 14% of its workforce.
“The decision is driven by two factors: market instability and deep changes in how AI is transforming the way businesses operate,” he explained.
Reasons for the Changes
According to Armstrong, Coinbase’s business remains highly volatile from quarter to quarter, and the current market slowdown requires the company to reduce costs proactively. The second factor is AI. Armstrong said that over the past year, he has watched engineers use AI to complete in days what once took weeks, while non-technical teams are already writing live production code.
“The pace of what a small team can accomplish has changed dramatically and continues to accelerate,” Armstrong wrote.
Armstrong said the company is rebuilding its management structure: hierarchy will be capped at five levels, leaders will oversee up to 15+ direct reports, and there will be no managers whose only role is managing — every leader must also be a strong operator.
Coinbase will also shift to small, AI-focused teams, including so-called one-person teams, where a single person acts as engineer, designer, and product manager.
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