Coinbase shares rise after exchange cuts 700 jobs due to AI

A U.S.-based crypto exchange, Coinbase, has announced that it will be cutting off 14 percent of its workforce, around 700 jobs, amid a major artificial intelligence (AI) restructuring plan.

The move is aimed at reducing cost and repositioning the business in the AI era.

The decision to lay off employees comes as the crypto exchanges all around the world face challenging conditions in the wake of low trading activity from their October peaks.

The restructuring plan is expected to cost the company $50 million to $60 million as part of the employee benefits and severance and the process will be completed in the second quarter of 2026.

The company will provide 16 weeks base pay to the laid off U.S. staff and also offer transition support.

Since the deployment of AI services in major companies, there’s been a wave of layoffs across them. At least 8 companies announced AI-related layoffs affecting 10,000 plus employees each, including Accenture, Amazon, Citigroup, Dell, Intel, Microsoft, TCS and UPS.

In a blog post, the Coinbase CEO Brian Armstrong said that the AI has helped automate the processes of non-technical teams, which previously needed headcounts.

He added that Coinbase is going for an overhaul to prepare itself for the next crypto cycle.

Shares of Coinbase rose 3.3% in premarket trading following the announcement.