Coinbase reduces work force by ~14%

[Yaunfitda]

https://x.com/brian_armstrong/status/2051616759145185723

This is according to Coinbase CEO Brian Armstrong, so that's roughly 600-700 jobs. And it's interesting that one reason is that they are shifting to AI driven operational. And as what we have been discussing and debating in this forum that AI is real and at some point it might take jobs from us.

So this is very interesting news as there could be more exchanges that might follow this move in the future.

It didn't have any negative impact so far in the market, even NASDAQ: COIN is up 2%++ today.

[sergiorus]

https://x.com/brian_armstrong/status/2051616759145185723

This is according to Coinbase CEO Brian Armstrong, so that's roughly 600-700 jobs. And it's interesting that one reason is that they are shifting to AI driven operational. And as what we have been discussing and debating in this forum that AI is real and at some point it might take jobs from us.

So this is very interesting news as there could be more exchanges that might follow this move in the future.

It didn't have any negative impact so far in the market, even NASDAQ: COIN is up 2%++ today.

This is the 4th round of layoffs in Coinbase since 2022.
That was expected and i think they never had any negative impact on the stock or coin prices. If anything shareholders probably see it as a positive thing that will lead to more profits.
FWIW many big crypto firms are doing layoffs these days: Crypto.com, Algorand to name a few.

[hugeblack]

Before and after AI, laying off employees and hiring more is a feature of all businesses, and there will be opportunities available to everyone (although they will require more skills). Therefore, I do not consider this news surprising or indicative of a real or profound transformation. In fact, the percentage is much lower than in many companies.

[AakZaki]

I don't think Coinbase is the only one that is reducing employees, this kind of thing is common for any company to do, especially when technology is getting more sophisticated that can replace the role of employees.
Regardless of any job, whether it is a permanent job or not, someone should be able to innovate on their own so that when it happens like this, the employee is not surprised or even confused about looking for a change of job.

I always remember the words spoken by the Founder of Exchange Indodax he said: "The world of businessmen is cruel, those who do not innovate will be eliminated"

[Hazink]

It's now a common something now since the Ai trend started the debate about if AI will take people's jobs or not be ongoing. Even if exchanges are not excluded from companies looking for ways to save costs. This should just still serve as a reminder for all not to get too comfortable with some jobs. You will never know when you company will decide to go for new innovation, and you might not be part of their new future.

[Darker45]

I was expecting the fast development of AI as the reason. I was surprised I didn't read AI before the last paragraph. Is it really a reason that "we're currently in a down market" and that there's a "need to adjust our cost structure"? I think we've recovered quite well, and on our way to get back into the 6-digit territory. Or are they just looking for a gentle way to kick some of their staff out because the reality is that AI has made them completely irrelevant?

[_act_]

Before and after AI, laying off employees and hiring more is a feature of all businesses, and there will be opportunities available to everyone (although they will require more skills). Therefore, I do not consider this news surprising or indicative of a real or profound transformation. In fact, the percentage is much lower than in many companies.

Yes, in the past there had been many jobs that became obsolete. Good examples are the jobs that are no more when the computer was created, the jobs gradually vanished, but computers also created more jobs. As AI are leading to job loss, AI is also creating jobs.

Another thing people should know is that there are some works that AI can not replaced. People should start shifting to such areas or move towards the AI jobs.

I don't think Coinbase is the only one that is reducing employees, this kind of thing is common for any company to do,

There have been many that we have discussed on this forum, but most of them are not related to cryptocurrencies. I think there will be some job loss in crypto that we are not discussing about. If not AI, exchanges supposed to have more workers in the customers services department, but bots are used mostly instead.

[Zwei]

And as what we have been discussing and debating in this forum that AI is real and at some point it might take jobs from us.

AI has already taken so many jobs, so it's no longer a matter of debate.
right now, if your work can be done by AI, then you might lose your job at any moment.

It didn't have any negative impact so far in the market, even NASDAQ: COIN is up 2%++ today.

from what i noticed, when companies lay off a % of their employees to replace them with AI, their stock price tends to go up or not move much at all.
i remember when block laid off 40% of their workforce, their stock price jumped up instead of going down.

[avp2306]

Before and after AI, laying off employees and hiring more is a feature of all businesses, and there will be opportunities available to everyone (although they will require more skills). Therefore, I do not consider this news surprising or indicative of a real or profound transformation. In fact, the percentage is much lower than in many companies.

There's nothing new about this since this is part of the cycle happening in the company. There are season that they need to hire new employees and there are also season that they need to layoff because there are less work to do in that season.

But due to existence of Ai everything change now, since instead of those companies will hire new workers. Lots of them choose to integrate that tool to save up money and try to automate those jobs that don't need much human interactions. By the way this is the crypto companies since march that cutoff their workers https://www.ccn.com/news/crypto/crypto-layoff-season-heres-the-list-of-firms-cutting-their-workforce

[ABCbits]

Am i the only one who worry that Coinbase non-technical team use AI for production? Non-technical imply they less likely to know the AI make mistake.

It didn't have any negative impact so far in the market, even NASDAQ: COIN is up 2%++ today.

from what i noticed, when companies lay off a % of their employees to replace them with AI, their stock price tends to go up or not move much at all.
i remember when block laid off 40% of their workforce, their stock price jumped up instead of going down.

It's probably because the investor assume money spend on worker would become company's profit, which leads more dividend for them.

[Lucius]

I would not be surprised if they fired 50% of people at once, because such companies always put profit first, and only then people and their destinies. Greedy bastards like BA who got rich by providing expensive services just want more money, but they don't realize that AI will bite them when they least expect it.

I personally don't care, I've never used them nor would I use any other CEX that requires KYC.

[Z-tight]

This has been happening in a lot of companies since the start of this year, both crypto and non-crypto firms, workers getting laid off to cut cost, so these companies can maximize revenue. Too bad for those who have and are going to lose their jobs, but we have surely not seen the end of it.

One could argue that coinbase can surely go on with these workers and still make profit, that's for sure. But laying them off would significantly cut their costs and position them for greater profit in the long term, and it is obvious what they would choose every single time: profit > people.

[FinneysTrueVision]

Downsizing is a normal part of any company, especially now that AI has made it easier to automate certain tasks. The replies to Armstrong’s post has many people raising concern about the part where he says "Non-technical teams are now shipping production code”. He made it sound like parts of their services are being vibe coded, which is not what you want to hear from one of the largest custodians in crypto. That is even more reason to hold your own private keys instead of trusting centralized exchanges.

[LogitechMouse]

---
This is according to Coinbase CEO Brian Armstrong, so that's roughly 600-700 jobs. And it's interesting that one reason is that they are shifting to AI driven operational. And as what we have been discussing and debating in this forum that AI is real and at some point it might take jobs from us.

So this is very interesting news as there could be more exchanges that might follow this move in the future.
--

I will not be surprised if his statement, and his reasons as to why he made this "difficult" decision is also created by AI.

Anyway, this has been the trend towards tech companies, and correct me, but this isn't the first time Coinbase has done it. This is what could scare most of the employees that are working on these tech companies. One day you will still go to work just like a normal day, then the moment you sleep, you will received an email telling that you've been laid off. A bit sad, but that's how AI will disrupt anything including the workforce.

As for AI in general, it's already taking lots of jobs from different people already, and if you don't know how to maximize it, you will end up suffering. Sad, but that's the truth and those who can't adapt to what's happening will be the ones that will suffer the most.  This will be just one of the many layoffs that will be happening this year. Expect more.

[KiaKia]

Laying off workers is now nothing but noises because this isn't the first time, even before AI become a thing it has been happening for many years, I still remember what happened after Covid hit the world in 2020, the world still moves on.

All I can say is people who are living on jobs must always evolve, do not wait till you are handed the sack letter before you can eat and live good somehow without that job.

Normally nothing last forever they say, while money is coming in make sure you are preparing for the days when no more money will come in for you, through jobs, you shouldn't be planning to work and eat via jobs forever.

There are still other ways to make money, AI can't take over everything, there are some jobs that AI can't manage, it's highly time to hunt for such jobs.

[aioc]

And as what we have been discussing and debating in this forum that AI is real and at some point it might take jobs from us.

So this is very interesting news as there could be more exchanges that might follow this move in the future.

Industries and companies are profit-driven; they will look for better options to increase profits, and AIs are just too tempting to ignore. It's already happening; we only need one major player in one industry for others to follow.
Industries no longer value humanity; they go where the money is. This is very painful to see because every worker who will be replaced has a family that relies on them. It's time for workers to upgrade themselves and be in the industry
where AIs cannot touch them.

[WillyAp]

If ind it short sighted by General Management. A worker is also your ambassador.
They give you free marketing and spread the word. And many buy your products.
 

[robelneo]

There are still other ways to make money, AI can't take over everything, there are some jobs that AI can't manage, it's highly time to hunt for such jobs.

Yes, that's true, you can still find another job or industry where your job cannot be taken by AI, but it will still hurt thinking that after serving for decades and spending almost your whole life in one company, your position is going to an AI I could accept it if it's another human that's going to replace me, but it's an AI and it cuts deep.

[coupable]

What is interesting in this news? Should we discuss how coinbase laying off its employees or about how AI can take our jobs? Let's address the two points:

>> Companies reduce the number of workers at the same rate they hire more employees. Coinbase might hire the double of the dismissed workers if it will reach the expanding growth that needs more labor hand. I can't get the point why the ceo announced the news like it's a victory.

>> Yes AI is alreading taking missions from the human for the simple reason that it perform tasks much more better and in very short time. We are not waiting for Coinbase smart ceo to confirm the info. Now just prepare yourself for the future that has been already started after lunching the first AI model few years ago.

[batang_bitcoin]

Coinbase is also one of the tech companies that will seriously take the cost cutting effective immediately. If those laid off jobs can be done by AI, that's what they'll do. They'll have no problem of using AI on that if the task is repetitive. We've seen this first with other tech companies which are not related to crypto but they have made a bold step as well. It's sad that the human capital is becoming less and this is alarming to be honest. We'll never know if our jobs and companies are the ones to announce such reduction of work force. I hope someday that we'll see these companies regretting these actions and will come back to huma work force.