Coinbase (COIN) has announced it is cutting approximately 14% of its workforce, or approximately 700 employees, just before its first quarter 2026 earnings report on May 7. The move is being described as an AI efficiency play in light of a down crypto market and a cost-survival move. The company's CEO, Co-founder and CEO Brian Armstrong, cited market cyclicality and the accelerating capabilities of artificial intelligence (AI) as the driving force behind the restructuring. The restructuring will eliminate layers of management and eliminate the concept of “pure managers” entirely. The new structure will focus on “AI native talent’s ability to manage fleets of agents to drive outsized impact. However, users have raised concerns about non-technical staff shipping production code, which has led to distrust in the company. The announcement of the restructuring led to a 4.1% gain on May 5, 2026, but the initial enthusiasm gave way to skepticism, and the stock ended lower. Investors are now expecting a positive outlook for the company's Q1 2026 results.