Coinbase, the cryptocurrency exchange based in the United States, has announced a 14% reduction in its workforce as it navigates a challenging market environment influenced by both a downturn in cryptocurrency prices and the transformative impact of artificial intelligence (AI). CEO Brian Armstrong stated that the company must be 'front-footed' in responding to these converging forces. He noted that while the crypto market is currently experiencing a downturn, it is also on the brink of a new wave of adoption involving stablecoins and tokenization. To adapt, Coinbase is adjusting its cost structure to emerge more efficient and agile for future growth. Armstrong highlighted that AI is revolutionizing workflows, enabling faster project completions and automation of processes. As part of the restructuring, Coinbase will eliminate traditional management roles, requiring leaders to also contribute directly to projects. The company is also experimenting with 'AI-native pods' that combine roles of engineers, designers, and product managers into single positions. To support employees affected by the layoffs, Coinbase is offering a comprehensive severance package, including a minimum of 16 weeks of base pay and additional benefits for U.S. employees, with similar support for international staff based on local regulations.