Authored by: Brian Armstrong, Coinbase CEO
Today, I made a difficult decision: to reduce Coinbase's headcount by approximately 14%. I want to explain why we are making this decision now, what it means for the affected colleagues, and how this will help us prepare for the future.
Why Now
Two forces are converging simultaneously, and we need to proactively address them.
The first is market factors. Coinbase is well-capitalized, has diversified revenue streams, and is equipped to navigate various market conditions. The crypto industry is also on the cusp of a new wave of adoption, with areas like stablecoins, prediction markets, and asset tokenization developing rapidly. However, our business still experiences volatility between quarters. Although we have successfully navigated cycles multiple times before and emerged stronger each time, we are currently in a market downturn. Therefore, we need to adjust our cost structure now so that, after this phase, we can embrace the next stage of growth as a leaner, more agile, and more efficient organization.
The second is that artificial intelligence is changing the way we work. Over the past year, I have seen engineers use AI to accomplish work in days that previously required weeks of team collaboration. Non-technical teams have also begun shipping production-grade code, and many of our workflows are being automated. The speed and output achievable by small, highly focused teams have changed dramatically, and this change is accelerating every day.
All these factors have brought us to a critical inflection point—not just for Coinbase, but for all companies. The biggest risk right now is inaction. We are making proactive adjustments ahead of time, reshaping Coinbase into a streamlined, high-speed, AI-first organization. We need to return to the speed and focus of our startup days and place AI at the core.
What This Means
To achieve this goal, we are not just reducing headcount and cutting costs; we are fundamentally changing how the company operates: restructuring Coinbase into an organization where "intelligence is the core, guided by humans at the edges." What does this mean in practice?
- Fewer layers, faster decisions: We are compressing the organizational structure to a maximum of five levels below the CEO/COO. Layers slow down speed and create coordination costs. The future belongs to small teams with high information density that move quickly. Managers will take on broader responsibilities, potentially managing 15 or more direct reports directly. Fewer layers also mean a lean cost structure that can operate efficiently across various market cycles.
- No more pure managers: Every leader at Coinbase must also be a strong and actively engaged individual contributor. Managers should be like "player-coaches," working hands-on alongside their teams.
- AI-native pods: We will organize around AI-native talent capable of orchestrating multi-agent systems to achieve greater impact. We will also experiment with further reducing team sizes, including "one-person teams" where engineering, design, and product roles are combined.
In short: AI is driving profound changes in how companies operate, and we are reshaping Coinbase to stay ahead in this new era. This is a new way of working, and we need to leverage AI across every aspect of our work.
To Affected Colleagues
I am fully aware that behind these decisions are real people—outstanding colleagues who have poured their hearts into the company and its mission. To those who are leaving: thank you. You helped build Coinbase into what it is today, and I am genuinely grateful for everything you have done.
All affected employees will receive a notification sent to their personal email within one hour, containing more information and inviting them to speak with their organization's HR business partner and a senior manager. Due to our responsibility to protect customer information, access to company systems has been revoked today. I know this may feel sudden and difficult to accept, but it is a responsible choice we must make.
For affected colleagues, we will provide a comprehensive support package to help you through this transition. Employees in the US will receive at least 16 weeks of base pay (plus an additional 2 weeks for each year of service), their next equity vesting, and 6 months of COBRA health insurance. Employees on work visas will receive additional transition support. Employees outside the US will receive similar support based on local circumstances and in accordance with relevant consultation requirements.
Coinbase has always prided itself on high talent density. Our employees are among the best in the world, and I have no doubt that your skills and experience will be highly sought after in the future.
How We Move Forward
For the remaining team members, I know today is a difficult day. We are saying goodbye to colleagues and friends we have worked alongside. But I want everyone to remember the following as we move forward:
Over the past 13 years, we have navigated four crypto winters, gone public, and built the most trusted platform in the industry. We have made it this far because we dare to make difficult decisions and remain relentlessly focused on our mission. This time will be no different—the company's long-term prospects and the outlook for the entire industry have not changed. More importantly, our mission has never been more critical to the world. Advancing economic freedom requires a new financial system, and we are building it.
Having gone through all of this, Coinbase will emerge more capable than ever of achieving our mission.
