In a note to employees, Armstrong said the decision was driven by two key forces: a cyclical downturn in crypto markets and rapid adoption of artificial intelligence, which is already reshaping how work is done across the company.
He said engineers are now able to deliver work in days using AI tools that earlier took weeks, while non-technical teams are also increasingly generating production-level code. This, he said, has fundamentally changed the pace and structure required to remain competitive.
The company plans to flatten its organisational structure, reduce management layers, and build smaller, high-impact teams. Armstrong also said leaders will be expected to act as “player-coaches,” combining management with hands-on execution.
Coinbase said affected employees will receive severance and transition support, including extended pay and healthcare benefits, depending on location.
Armstrong said the restructuring is aimed at making the company faster and more efficient through market cycles, adding that the long-term crypto adoption outlook remains intact.
