If you still believe AI does not pose a risk to jobs worldwide, maybe a letter from Coinbase CEO Brian Armstrong to employees about a massive layoff could offer you a glimpse of what is about to come.
In a Tuesday post on X, Armstrong revealed that he will downsize Coinbase workforce by around 14%. He explained how AI has changed how the company operates over the past year.
'I've watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day,' he wrote.
While acknowledging that Coinbase is well-positioned with diversified revenue streams to 'weather any storm,' the company is still volatile every quarter. While Coinbase has overcome difficult cycles in the past, it is currently in a 'down market' and must adjust cost structures to emerge as a more efficient company in the next phase of crypto growth and adoption.
Armstrong believes that the biggest risk now would be inaction. 'We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native. We need to return to the speed and focus of our startup founding, with AI at our core,' he noted.
Coinbase As Intelligence With Human Support
Armstrong's vision goes beyond downsizing and cost reduction to rebuilding Coinbase as an intelligence with human 'around the edge aligning it.'
It would mean an organizational restructuring with fewer layers below the CEO and COO levels, as more layers lead to 'coordination tax' and costs time. In the future, it will be about small, high-impact teams that work faster.
The company will also shift its focus to AI-native talent who can manage agents to drive results. 'We'll also be experimenting with reduced pod sizes, including "one person teams" with engineers, designers, and product managers all in one role,' the CEO wrote.
In all, Armstrong thinks AI is driving a monumental change in how companies operate, and we need to utilise AI across 'every facet of our jobs.'
What Happens To Furloughed Workers?
Armstrong highlighted that affected employees will be offered a comprehensive package designed to support them through this difficult period.
US workers will receive a minimum of 16 weeks of base pay (plus two weeks per year worked), their next equity vest, and six months of COBRA.
Those who are on work visas will get extra transition support, while those outside the US will receive similar support, subject to local factors. Coinbase layoffs come amid an ongoing trend of global downsizing by major companies as they rapidly integrate AI to cut costs and streamline processes.
For instance, Meta Platform will trim 10% of its workforce this month, likely due to high AI spending and a sales slump during the Middle East conflict. In April, Snap also disclosed it would trim 16% of its workforce due to advancements in AI. Jack Dorsey's Block also cut the company's workforce by 40% recently, hoping that AI will replace middle management roles.
Originally published on IBTimes UK
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