How AI became crypto's favorite reason to cut staff

Coinbase, Block and Crypto.com have all cited AI to justify recent cuts, though Scale AI’s Jason Droege suspects companies are using the technology as cover.

Coinbase became the latest crypto company to cut its workforce on Tuesday, as a wave of layoffs sweeps through an industry navigating a down market and the pressure to embrace AI.

CEO Brian Armstrong said the company is using AI to flatten its organizational structure, with managers expected to act more like "player-coaches."

"AI is bringing a profound shift in how companies operate, and we're reshaping Coinbase to lead in this new era. This is a new way of working, and we need to leverage AI across every facet of our jobs," Armstrong said in an email to employees, also shared on X on Tuesday.

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