Coinbase (COIN) CEO Brian Armstrong revealed Tuesday morning that the crypto exchange is executing a 14% layoff of its entire workforce. Armstrong, in a post on X, wrote that Coinbase would reduce its global workforce by 14% as it faces a “down market,” noting AI was also “changing how we work.” Per a Coinbase release, the layoff will affect roughly 700 employees.
Laid-off employees will receive a minimum of 16 weeks’ base pay and an additional two weeks per year worked, their next batch of company stock, and six months of health insurance. Employees who are on a work visa will get “extra transition support,” and employees who work internationally may receive different severance packages. Coinbase anticipates up to $60 million in total restructuring expenses as it carries out employee severance and other termination benefits.
COIN stock fell as much as 4% on Tuesday after Armstrong’s announcement. Year to date, the stock has fallen by over 15%, as crypto stocks have been sluggish. Contrary to today’s dip, COIN opened Monday’s trading session moving higher after the US Senate shared new compromise language in the U.S. Clarity Act. The revised language paves the way for a Senate Banking Committee review and eventual detailed rules from the U.S. Treasury and the Commodity Futures Trading Commission (CFTC). Specifically, the update means that platforms like Coinbase would be barred from paying customers yield on their idle stablecoin balances.
Coinbase’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.