Coinbase Global (COIN) plans to cut about 14% of its staff as the crypto firm moves to lower costs and build a leaner team. CEO Brian Armstrong said Tuesday that the step is tied to two key forces: a weak crypto market and the fast rise of AI in daily work. The market reacted positively to the news. The stock is up nearly 4% in pre-market.
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The move comes just before Coinbase is set to post its first-quarter results on Thursday.
In a memo shared on X, Armstrong said the firm must get ready for its “next phase of growth.” He added that crypto may be “on the verge of the next wave of adoption,” but the firm still needs to act now amid sharp market swings.
“Our business is still volatile from quarter to quarter,” Armstrong said. He added that Coinbase is “currently in a down market” and needs to adjust its cost base so it can emerge from this phase “leaner, faster, and more efficient.”
AI Becomes Part of the Layoff Story
At the same time, Armstrong said AI is changing how much work small teams can get done. He said Coinbase is moving early to become “lean, fast, and AI-native,” with AI placed at the core of how the firm runs.
This puts Coinbase in line with a wider trend across tech. Several firms have cut jobs while also saying AI can help teams move faster with fewer staff. Block (XYZ), Pinterest (PINS), CrowdStrike (CRWD), and Chegg (CHGG) have all been part of that shift in recent months.
Still, Armstrong did not frame the move as a turn away from crypto. Instead, he said he remains upbeat on the sector, with stablecoins, prediction markets, and tokenization seen as key areas for the next wave of growth.
Is COIN Stock a Good Buy Now?
Turning to the Street, Coinbase Global has a Moderate Buy consensus. Of 23 analysts’ ratings, 18 rate it a Buy, three rate it a Hold, and two rate it a Sell. The average COIN stock price target is $258.70, which implies a 27.44% upside from the current price.
