Crypto exchange Coinbase announced on Tuesday that it will lay off around 700 employees, representing about 14 per cent of its workforce, as part of a broader restructuring plan designed to navigate market volatility and expand the use of artificial intelligence tools to boost efficiency.

The overhaul will also streamline the company’s structure to five layers beneath the CEO and COO, according to an internal email shared on the company blog by Chief Executive Officer Brian Armstrong.

The reorganisation will introduce stricter expectations for managers to take on more individual contributions, with some leaders overseeing more than 15 direct reports.

Coinbase also plans to build smaller, AI-powered teams and experiment with “one-person teams” that combine engineering, design, and product management functions.

The company said in a filing with the U.S. Securities and Exchange Commission that it expects to record between $50 million and $60 million in severance-related costs.

In his email, CEO Brian Armstrong pointed to ongoing volatility in the crypto market as a key reason for reassessing the company’s cost structure.

“While we’ve managed through that cyclicality many times before and come out stronger on the other side, 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,” he wrote.

He also underscored the importance of maximising artificial intelligence tools, writing: “AI is changing how we work. Over the past year, I’ve watched engineers use AI to deliver in days what previously took entire teams weeks.”