Cryptocurrency exchange Coinbase announced plans to lay off approximately 14% of its workforce, affecting roughly 700 employees, as part of a broader restructuring effort aimed at streamlining operations and increasing artificial intelligence adoption across the company.

CEO Brian Armstrong said in a letter to employees that the cuts reflect "a new way of working" that will leverage AI tools across all aspects of the business. The restructuring is designed to address ongoing market volatility in the cryptocurrency sector while improving operational efficiency through automation.

Coinbase shares gained following the announcement, as investors viewed the cost-cutting measures favorably. The layoffs represent the latest effort by the crypto exchange to adapt to challenging market conditions that have persisted in the digital asset industry.

The move comes as other major companies are also implementing workforce reductions while pursuing AI-driven transformations. PayPal recently announced similar plans under its new CEO's turnaround strategy, while pharmaceutical company BioNTech said it would close facilities in Germany and Singapore, affecting 1,860 positions.

Coinbase's restructuring reflects broader trends in the technology and financial services sectors, where companies are increasingly turning to artificial intelligence to reduce costs and improve productivity amid economic uncertainty and competitive pressures.