PANews reported on May 5th that Coinbase CEO Brian Armstrong disclosed the reasons for the layoffs in an article on the X platform. He stated that the adjustment was based on two main factors: firstly, the crypto market still experiences cyclical fluctuations, and the company needs to optimize its cost structure during the current downturn; secondly, AI is significantly changing the way software is developed and organizations collaborate, and engineering and non-technical teams have been able to significantly improve delivery efficiency with the help of AI.

In terms of organizational restructuring, Coinbase will implement several adjustments, including reducing organizational layers to a maximum of five, promoting a "few-layer, high-authority" structure, and requiring managers to also have front-line execution capabilities (player-coach model). Simultaneously, the company will explore "AI-native teams" and even experiment with single-person team collaboration models, with AI agents assisting in completing product and engineering tasks.

Armstrong emphasized that the company will reshape its operations around AI, making teams smaller and more efficient, and driving automated processes and decision support with AI. For affected employees, Coinbase will provide at least 16 weeks of base salary, additional seniority compensation, accelerated equity vesting, and continued health insurance, as well as visa support and transition assistance. This adjustment aims to make Coinbase more "lean, agile, and AI-native" in the next crypto cycle, and the company's long-term mission—to promote economic freedom and build a new financial system—remains unchanged.