BlockBeats News, May 5th, Coinbase CEO Brian Armstrong announced in an internal memo that Coinbase will reduce its staff by about 14% to cope with market fluctuations and organizational changes driven by AI technology.

Armstrong stated that the current crypto market still experiences cyclical volatility, and the company needs to proactively adjust its cost structure to stay lean and efficient during a downturn. At the same time, AI is significantly transforming the way we work, enabling both technical and non-technical teams to greatly enhance productivity through AI, driving the company towards a smaller and more efficient operational model.

As part of the plan, Coinbase will streamline its organizational hierarchy to a maximum of 5 layers, reduce purely managerial positions, require managers to also have tangible output capabilities, and focus on building an "AI-first team" to explore operating models with even smaller scales, including "individual contributor teams."

For affected employees, the company will provide a compensation package, including a minimum of 16 weeks of base pay (plus tenure-based compensation), equity vesting, and medical benefits support. Armstrong pointed out that this move aims to reshape Coinbase into a leaner, faster, AI-centric organizational structure to compete in the industry's new phase.