Coinbase is laying off 14% of its staff. Those who remain at the company are about to see quite a different workflow.
CEO Brian Armstrong outlined his rationale for the layoffs in a memo on X on Tuesday, which he also said he sent to employees.
This is an email I sent earlier today to all employees at Coinbase:
Team,
Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we’re doing this now, what it means for those affected, and how this positions us for the…— Brian Armstrong (@brian_armstrong) May 5, 2026
In addition to mentioning several themes that have been cropping up in layoff memos all year, Armstrong offered key insights into how Coinbase’s workforce will operate moving forward.
Its stock price is down nearly 17% since the start of this year, and down nearly 3% at the time of writing on Tuesday.
1. Maximum five layers between you and the CEO
As Armstrong wrote: “We are flattening our org structure to 5 layers max below CEO/COO. Layers slow things down and create a coordination tax. The future is small, high context teams that can move quickly.
Armstrong said leaders will “own much more” and have around 15 direct reports.
2. No pure managers
Middle managers are in the firing line … again.
Armstrong said that in Coinbase 2.0, the concept of “pure managers” will be a thing of the past. Instead, managers will be required to act like “player-coaches” and build alongside their teams.
The concept of a “player-coach” isn’t new, nor is the crusade against middle managers. Tech firms have been cutting these roles for some time and rebranding those that remain.
3. You just might find yourself on a ‘one-person team’
It might be time to rewrite the old “no ‘I’ in team” adage.
As Armstrong wrote in the layoff memo, “We’ll be concentrating around AI-native talent who can manage fleets of agents to drive outsized impact.
“We’ll also be experimenting with reduced pod sizes, including ‘one person teams’ with engineers, designers, and product managers all in one role.”
AI is driving a “tiny team” revolution. The technology is enabling the work once done by larger teams to be replaced by smaller groups or individuals working with AI.
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