Crypto exchange Coinbase has announced the lay-off of about 700 employees, representing 14% of its workforce, as part of a broader restructuring to tackle market volatility.

The reorganisation will see the company’s management structure flattened, with managers expected to be more involved. The firm is also focusing on smaller teams using AI tools and experimenting with ‘one-person’ teams combining engineering, design and product management roles.

Coinbase anticipates spending around $50 million to $60 million on severance packages as it looks to emerge leaner for the next phase of growth. CEO Brian Armstrong cited crypto market volatility as a key driver, noting: 'We need to adjust our cost structure now so that we emerge from this period leaner, faster and more efficient.'

The move comes amid increasing use of AI in tech companies, highlighting the evolving landscape where human roles may need redefining. Will this be a temporary blip or a permanent shift? Only time will tell.