Coinbase Cuts 700 Jobs to Save $120–150M, Q1 Revenue Falls 5%
COIN•Coinbase cut 700 jobs (14% of staff) on May 5, targeting $120M–$150M in annual operating savings against $50M–$60M in one-time charges, leveraging AI automation. Q1 revenue slipped 5% YoY to $1.6B contributing to a 30% drop in trading volumes and Bitcoin’s 50% price decline.
1. Workforce Reduction Details
On May 5, Coinbase cut 700 positions, or roughly 14% of its workforce, citing a shift toward AI-driven operations and a need to streamline costs. The CEO message emphasized the company’s goal to become lean, fast and AI-native in response to evolving market dynamics.
2. Financial Impact
Trading volumes fell 30% year-over-year in Q1 2026, contributing to revenue slipping 5% to $1.6 billion. The cryptocurrency downturn saw Bitcoin’s price fall from $125,000 in October to $62,000, intensifying pressure on transaction-based income.
3. Cost Savings and Charges
The restructuring aims to deliver $120 million–$150 million in annual operating expense savings while incurring $50 million–$60 million in one-time charges. Coinbase holds $7.5 billion in cash, providing a buffer as the company executes its cost-reduction plan.
