Coinbase CEO Brian Armstrong shared a company-wide email informing employees that the company has decided to cut 14% of its global workforce. The CEO noted that the reduction was part of the company’s initiative to transform into an AI-driven enterprise.
What is the severance package for work visa holders?
“To those affected, we will be providing a comprehensive package to support you through this transition. US employees will receive a minimum of 16 weeks base pay (plus 2 weeks per year worked), their next equity vest, and 6 months of COBRA,” the CEO said. He added that those working on work visas will also get “extra transition support”.
Also Read: Coinbase cuts 14% of workforce. Read CEO Brian Armstrong’s full email to team
As for employees working outside the US, they will receive a similar severance package. However, it will be “based on local factors and subject to any consultation requirements.”
Why the mass layoffs?
Explaining the reason, he shared, “First, the market. Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm. Crypto is also on the verge of the next wave of adoption, with stablecoins, prediction markets, tokenization, and more taking off. However, our business is still volatile from quarter to quarter. While we've managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth.”
{{/usCountry}}Explaining the reason, he shared, “First, the market. Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm. Crypto is also on the verge of the next wave of adoption, with stablecoins, prediction markets, tokenization, and more taking off. However, our business is still volatile from quarter to quarter. While we've managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth.”
{{/usCountry}}He added, “Second, AI is changing how we work. Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day.”
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The CEO said that these factors led the company to an “inflection point,” where it had to take action even if it was risky. “We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native. We need to return to the speed and focus of our startup founding, with AI at our core.”
Those affected would receive their termination emails on their personal IDs, and their access to Coinbase communication channels would be revoked immediately.