A number of technology companies are undergoing or facing massive layoffs, largely due in part to the rise of AI, and while some people may tune out the news because it feels concentrated on one industry, Coinbase CEO Brian Armstrong is warning that “every company” is going to have to make similar decisions soon.
“The pace of what’s possible with a small, focused team has changed dramatically, and it’s accelerating every day,” Armstrong wrote in an email to employees. “All of this has led us to an inflection point, not just for Coinbase, but for every company.”
On Tuesday, Armstrong announced the company was laying off 14 percent of its workforce, or an estimated 700 people. Armstrong cited AI and rapidly changing workforce needs as reasons for his company’s restructuring. He added that, specifically, manager and leadership roles will require more contributions beyond managing people.
“Every leader at Coinbase must be a strong and active individual contributor,” Armstrong said. “Managers should be like player-coaches, getting their hands dirty alongside their teams.”
Armstrong argues that there is still a need for people, but employees need to rethink how they work. Employees need to be doers and innovators. As AI expands beyond tech, it’s possible this kind of approach could be implemented in other industries.
Coinbase is also changing the overall company structure. Armstrong said there will be a maximum of five layers below the chief executive officer and the chief operating officer. The goal, according to the CEO, is both financial and practical. It gives the company a “leaner cost structure” that he says can weather business downturns, and allows the company to work more quickly.
“Layers slow things down and create coordination tax,” Armstrong said. “The future is small, high context teams that can move quickly. Leaders will own much more, with as many as 15+ direct reports.”
In the first months of 2026, more than 100 technology companies have collectively laid off 92,000 people. CEOs have regularly cited AI as a large contributor to layoffs, but Sam Altman, the founder of OpenAI, has expressed skepticism. Altman told CNBC at the India IA Summit in February that AI is reducing the need for employees, but also said companies are conveniently blaming AI when layoffs aren’t necessarily due to technological advancements.
Altman added that there will be “new jobs” that are created, as has been the case with other technology revolutions.
Coinbase Stock
The Coinbase layoff news came ahead of its earnings call and the restructuring helped boost its stock price on Tuesday. When the market opened on Tuesday, the company’s stock spiked from Monday’s close of $202.99 to $207.87.
AI Layoffs 2026
There is a looming potential of 8,000 job cuts coming at Meta this month, according to reports. In an internal memo to staff, Janelle Gale, the chief people officer, said the cuts were meant to give the company room to “offset the other investments we’re making.” Gale didn’t mention AI specifically, but at the end of last year, CEO Mark Zuckerberg said Meta planned to spend up to $135 billion on technology.
“We’re starting to see projects that used to require big teams now be accomplished by a single very talented person,” Zuckerberg said on an earnings call in January.
Anthony Tuggle, an executive coach and leadership expert, warned that these moves are not a temporary trend.
“This represents a fundamental structural shift rather than a temporary market correction,” Anthony Tuggle told CNBC. “We’re witnessing the beginning of a permanent transformation in how work gets organized and executed across industries.”
Raphael Bloch, a crypto journalist, posted on X that there’s “no surprise here” in regard to the Coinbase layoffs. He said it wasn’t all related to AI, but that the investment in the tech and its ability to automate entire workflows have offered companies room to cut people.
“The wave is just beginning: useless projects will die, and viable companies like Coinbase will cut headcount,” Bloch said.
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