On Tuesday, Armstrong made a post on X that included the full email he sent to employees regarding the layoffs.
“We’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth,” Armstrong wrote.
Coinbase will not only cut costs and reduce head count but also “fundamentally” change how the company operates, he said.
For one, Armstrong said the company would flatten its structure to a maximum of five layers between executives and employees.
The billionaire crypto CEO said that in cutting middle manager roles, which “slow things down and create coordination tax,” leaders will have as many as 15 direct reports and the company will have a “leaner cost structure that is built to perform through all market cycles.”
Coinbase will focus on “AI-native talent,” Armstrong said. He also explained that the company will experiment with one-person teams, in which a single person will complete the tasks of engineers, designers, and product managers.
