Coinbase is cutting about 14% of its global workforce, CEO Brian Armstrong announced Tuesday on X, a move that will affect roughly 700 employees. Armstrong said the company is making the reduction amid a “down market” and because artificial intelligence is “changing how we work.” Details of the severance package were outlined by Coinbase: departing staff will receive a minimum of 16 weeks’ base pay plus an additional two weeks for each year of service, their next scheduled tranche of company stock, and six months of health insurance. Employees on work visas will receive “extra transition support,” and those based outside the U.S. may be offered different severance terms. Coinbase expects up to $60 million in restructuring expenses tied to severance and other termination-related costs. The news weighed on COIN shares, which fell as much as 4% on Tuesday. The stock has been under pressure year-to-date, down more than 15%, reflecting a broader slump in crypto-related equities. That said, Coinbase’s stock has been notably volatile — it recorded 54 moves greater than 5% in the past year — suggesting the market views Tuesday’s announcement as significant but not a game-changer for the company’s long-term prospects. Coinbase’s price action earlier in the week had actually benefited from regulatory progress: the stock opened higher Monday after the U.S. Senate released new compromise language in the so-called U.S. Clarity Act. The update clears the way for a Senate Banking Committee review and directs the Treasury and the Commodity Futures Trading Commission (CFTC) to produce detailed rules. One consequential provision would bar platforms like Coinbase from paying customers yield on idle stablecoin balances — a change that could reshape some crypto lending and yield products. In short: Coinbase is slimming its workforce to navigate tougher market conditions and adapt to AI-driven changes in operations, while juggling regulatory headwinds and persistent stock volatility. Read more AI-generated news on: undefined/news