If you still believe AI does not pose a risk to jobs worldwide, maybe a letter from Coinbase CEO Brian Armstrong to employees about a massive layoff could offer you a glimpse of what is about to come.
In a Tuesday post on X, Armstrong revealed that he will downsize Coinbase workforce by around 14%. He explained how AI has changed how the company operates over the past year.
'I've watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day,' he wrote.
While acknowledging that Coinbase is well-positioned with diversified revenue streams to 'weather any storm,' the company is still volatile every quarter. While Coinbase has overcome difficult cycles in the past, it is currently in a 'down market' and must adjust cost structures to emerge as a more efficient company in the next phase of crypto growth and adoption.
Armstrongbelieves that the biggest risk now would be inaction. 'We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native. We need to return to the speed and focus of our startup founding, with AI at our core,' he noted.
Armstrong's vision goes beyond downsizing and cost reduction to rebuilding Coinbase as an intelligence with human 'around the edge aligning it.'
It would mean an organizational restructuring with fewer layers below the CEO and COO levels, as more layers lead to 'coordination tax' and costs time. In the future, it will be about small, high-impact teams that work faster.
The company will also shift its focus to AI-native talent who can manage agents to drive results. 'We'll also be experimenting with reduced pod sizes, including "one person teams" with engineers, designers, and product managers all in one role,' the CEO wrote.
In all, Armstrong thinks AI is driving a monumental change in how companies operate, and we need to utilise AI across 'every facet of our jobs.'
Armstrong highlighted that affected employees will be offered a comprehensive package designed to support them through this difficult period.
Source: International Business Times UK
