No, you didn't. You watched engineers use AI to ship in days something that looks like what used to take a team weeks. After enough rounds of feature evolution, you'll realise that what they actually shipped isn't at all the same. Anthropic's C compiler, which also seemed like a good start that would have taken people much longer to deliver, ended up being impossible to turn into something actually workable.
In a year or so, software developed by "AI-native talent who can manage fleets of agents to drive outsized impact" - which is another way of saying people who ship code they don't understand and therefore haven't fixed the architectural mistakes the agents make - will become impossible to evolve, and then things will get very interesting.
AI can help software developers in many ways, but not like that.
We do this every day. I'm sorry to say, we are indeed shipping in days what used to take weeks.
I do systems programming. Before AI feature development roughly went like, design, implement, test, review with some back edges and a lot of time spent in test and review.
AI has made the implementation part much faster, at the cost of even more time spent testing and reviewing, though still an improvement overall.
We do not see the weeks to days improvement though. The bottleneck before was testing and reviewing, and they are even bigger bottlenecks now.
What kind of work do you do, and what kind of workflow were you using before and after AI to benefit so much?
Look at the best models from Spring 2025, and compare with now (and similarly for Springs 2024 and 2025). Armstrong and lots of others are betting that this trend will continue, and if it does, the LLMs will ship code the LLMs understand, and whether any human specifically understands any particular part will mostly not matter.
I find this particularly funny. There were more than a couple Star Trek Episodes where some alien planet depends on some advanced AI or other technology that they no longer understand, and it turns out the AI is actually slowly killing them, making them sterile, etc. (e.g. https://en.wikipedia.org/wiki/When_the_Bough_Breaks_(Star_Tr... )
Sure, Star Trek is fiction, but "humans rely on a technology that they forget how to make" is a pretty recurrent theme in human history. The FOGBANK saga was pretty recent: https://en.wikipedia.org/wiki/Fogbank
It just amazes me that people think "Sure, this AI generated code is kinda broken now, but all we need is just more AI code to fix it at some unknowable point in the future because humans won't be able to understand it!"
The problem is that executives could take the 15-20% productivity boost and be content, but they read stuff like this, get greedy, and they don't understand the risk they're taking.
This is how I feel. It’s building things for me that work. I don’t care how it works under the hood in many cases.
Just a minute ago 5.5 looked at some human-written code of mine from last year and while it was making the changes I asked for it determined the existing code was too brittle (it was) and rewrote it better. It didn't mention this in its summary at the end, I only know because I often watch the thinking output as it goes past before it hides it all behind a pop-open.
There are strengths, but if you think its writing stream of code and just using it as is, I would LOVE to compete against you.
Most devs aren’t working on cutting edge, low level, mission critical systems. AI is great for that. Every company I personally know have been fast shipping features that are being used daily by millions of people for the past 7 months.
We have the same thing on my team, and we also understand the limitations of AI generated code. If you’re more or less experienced, you can easily see the “good” and “bad” sides of it. So you kinda plan it out in a way that you can “evolve AI generated software”. I wouldn’t say the same thing in 2025 January, but it’s much different times now. Things are already working.
If you're truly "managing fleets of agents" there's no way you're able to sift through the good and the bad in the output. If your AI-generated code is evolvable (which is hard to tell right now) then you're not writing it with "fleets of agents". If you are writing it with fleets of agents, I would bet it's not evolvable; you just haven't reached the breaking point yet.
This is going to end poorly for them. The only good managers I've had over around 20 years in the industry were 100% people managers and had no IC type of role expectations.
I've personally walked away from multiple manager role interview loops when I ask about the split only to find that they expected managers to also take on partial roles with IC engineering work. I know I can't be effective in either when having to juggle two entirely different hats, and in my anecdotal experience I've never seen anyone else do it well either.
While AI is likely a productivity boost, the underlying reason is not AI.
And something else I don't get about these AI related layoff announcements: if AI was a productivity boost wouldn't you hire more engineers and technical staff to capture the value? Or else you're basically saying "we're a tech company that has no idea what to do with more super-engineers".
They aren't saying that they don't know what to do with the AI productivity boost, but rather they think it worth taking a huge productivity hit right now so they can invest in the future. Whether their vision of the future is realistic...
Execution of unrelated ideas seems like a natural follow on, and having managed several such "labs" efforts, it's actually a good idea but it inevitably grinds up against the lack of will to continue investing in the face of headwinds, especially since the main business line is several orders of magnitude larger than anything labs can deliver in a foreseeable timeframe.
It would be slop, but the market would love it
They’ve added tokens and altcoins to the platform, but I don’t think that’s a particularly strong long-term bet.
The competition is also stiff with decades of experience and network effects
The truth is these crypto shops have a pretty poor reputation in the traditional finance industry. Nobody in trading tech goes to work for them unless they offer insane salaries, because they (we) know it's an unstable place to be.
The worst part of using something like Coinbase is having to do yet another bank transfer, waiting for it to clear, doing KYC/AML yet again, etc etc for what most people is just to buy one or two single asset (BTC or maybe ETH probably). Instead just click buy in Robinhood or Schwab along with everything else.
A friend of mine works for one of the major crypto firms and they're starting to deploy algorithmic trading bots on their own exchange.
The spreads on these markets can be diabolical
As someone who did have 15 direct reports for a while, it’s a joke.
You basically are their manager in name only. Your time is so split you can’t give any one direct reports the attention they deserve. Quarterly and annual reviews are a farce because you genuinely don’t really know how people are doing except the signals you can receive when you’re not in a meeting with one of your 15 reports.
Just goes to show how far up their own asses some CEOs are. Meanwhile real people just want a boss who cares. Hope Brian feels happier with an extra billion dollars or whatever this year!
Is this code for "we're firing all the old people"? As I understand it, I can say I'll only hire proficient English speakers (a "bona fide occupational requirement"), but I can't say I'll only hire native speakers, as that would discriminate against various protected groups. This seems like the same thing—proficiency may be a bona fide requirement, but expecting they learned this year's workflow first is age discrimination.
I don't expect ethical conduct from crypto companies and will not be sad if they are sued into oblivion.
I see AI-native as those who have embraced it, and are learning to leverage it appropriately.
Congratulations. But you completely missed my point. I didn't say old people can't be in tune with AI.
> I see AI-native as those who have embraced it
That's not what the word "native" means. In the human language situation I referred to, it's about the language you learned first. It's not a synonym of proficient or fluent. If you learned to code first without AI tools, you are not AI-native by any definition I would understand, no matter how good at it you may be.
It's not just "English-native" that makes me think they have this meaning in mind. It's also the term "digital native" that gets thrown around a lot and is absolutely about how old you are. https://en.wikipedia.org/wiki/Digital_native
{1} scottlamb: "I suspect their lofty stated goal of X is a lie, to disguise their true goal of Y, which is something common which companies find much easier and more-desirable."
{2} CityOfThrowaway: "You are wrong, because it's obvious that X is achievable... if you define 'native' in a certain way."
{3} Terr_: "Uh, what? That doesn't make sense. The feasibility of X isn't part of Scottlamb's argument. Even if we assume X is possible, it isn't evidence they actually intend X over Y.
I'm not sure exactly which children they're planning to replace all their staff with, nor how they plan to get around the child labour laws.
Huh? If it came out this year then everybody had a chance to learn it this year?
You might assume they aren't going to be so stupid as to try to exclude everyone who isn't new to programming. I wouldn't. They're a crypto business.
See also "digital native", a popular term which is absolutely about growing up after the technology in question was ubiquitous. https://en.wikipedia.org/wiki/Digital_native
* explains the reasons (financials, AI enablement)
* talks about what folks who are leaving get in detail (first) and thanks them
* talks to the folks who are staying
Layoffs are hard, no doubt, and I am not sure he's making the right choice. I see plenty of doubt about some of the actions in other comments that echoes mine. I certainly wouldn't want to have 15 direct reports and also ship production code regularly. But as CEO, it's his job to make these kinds of choices.
The proof is in the pudding as they say. We'll see how Coinbase does with this new orientation in the next year or so and that will determine if this was a wise or foolish move. Is there a flood of talent leaving? Major breaches? Business as usual with better than expected profits?
Time will tell.
Its all lip service - either AI generated or hand written.
I don't think this is true. Humans typically prefer "thanks for the hard work, here's your severance" to "you suck, here's your severance, loser."
Humans like being treated with respect, and words are a big part of that. Money is nice, but it's not the only thing we care about.
I'm not convinced a polite but AI-written email hits the same note. At the very least it's unintentionally disrespectful, which isn't a direct challenge. Your boss doesn't care enough to write an email by hand, but also doesn't care enough to burn bridges and insult you.
For sure this part screams LLM
Except for that tone-deaf part at the end, where right after he talks to the people who "will be leaving" (that is, the people getting kicked out), he says that Coinbase will be stronger and healthier for this. Which makes it hard not to draw the conclusion that the people "leaving" are part of the unhealth.
The CEO probably does not even think that, and just wants to reduce costs. But from what was written, the implications are decidecly suboptimal.
What happens when this person inevitably leaves and they have no one who knows even a little bit about the process or tools used?
I would forget half the processes I use if I didn't document them all religiously. The benefit now is that I can save myself significant time by having an LLM help me write the docs.
As someone who lived through multiple rounds of layoffs at big tech companies this seemed quite generous.
I got laid off 3 years ago and got a mere 2 weeks + 1 month of COBRA. It was a tech company, but not a big one.
However, I don't think this is that unusual in SV layoff packages.
Either way, I'd still be shitting my pants. 16 weeks is not a lot of time to find another job in today's environment. I know devs who have been out of work for years and had to resort to stocking shelves at Home Depot to tread water.
It wasn't that long ago that, in SV, the dominant values were humility, kindness and openness to all views (even if behind the scenes there was the ruthlessness demanded by capitalism). The last few years have seen this value system corrode, and it seems like its hurting everyone. From the tech workers constantly churning for no good reason, to the tech executives sequestered in their own thought bubbles until reality finally hits them (usually, too late to change).
Is Brian here? Can he speak more to this? What exactly are non technicals shipping to production code?
I've got no position in Coinbase but is that a wise thing to say as a public company? I'd be alarmed if I were a share holder
But also the type of investor who is into crypto in the first place will probably love this
Crypto bros AI bros
They hear this from the sellside, from activists, from the guys managing their private market allocations etc.
- big institutional allocators
- activists
- the sellside
- guys managing their private market allocations
Sounds tight I love the direction industry is heading lol.
As difficult as it is to use CSS to centre a field, the stakes are in a different ball park.
I'd love to hear more about the positive effects of designers and PMs using AI, especially more on the PM side, if you care to go into more detail
+ 2021 | 3,730 employees + 2022 | 4,706 employees + 2023 | 3,416 employees + 2024 | 3,772 employees + 2025 | 4,951 employees + 2026 | 4,250*
*Estimated following May 2026 layoffs.
So the reduction gets them closer, but still higher than where they were in 2024. Given the fact that the crypto business doesn't seem to be growing much over the last few years it can be argued that they over hired in 2025 and going back to 2024 numbers just makes sense. And as others have said in the comments, they haven't turned a profit so likely this makes business sense and the AI shine is trying to make the news less ugly for investors.
Crypto was a big hype of last decade.
Every year that goes by there are fewer people interested in an old hype, and therefore a smaller and smaller market for coinbase.
Coinbase is on a path to death. It might take 20 years, but the decline has already begun.
What's the theory on this? It seems to be common conclusion, but I don't understand why AI changes the situation here.
I understand that AI means you can do more with fewer people. Fewer people means less coordination overhead and fewer managers and fewer layers. What I don't get is why you want your managers to be doing IC work more so with AI than before. I don't see why anything changes about needing roughly 1 first line manager for every 6-8 people, or why it would be more beneficial now that the managers have production programming responsibilities.
Both before and after AI it's important that managers have real technical knowledge of the codebase. Having managers do actual production IC work in my experience has been a bad allocation of resources, though, and I don't see why AI changes that.
(a) Someone has to do the management tasks. Why do we think that isn't a full time job anymore?
(b) When managers do production IC work, in my experience it increases the load on ICs in review, because the manager one would _expect_ to not be _as_ expert as pure ICs on the codebase, and yet they are perceived as "senior". ICs then have overhead in having to manage that power imbalance in review. I have known a few extremely productive manager/ICs… but the effect on their teams was not super great. It made the manager into something of a micromanager and the actual ICs lacked autonomy.
Boy that's scary for a company that's effectively fintech...
The question remains, if there are no pure managers, then is this CSM / Sales shipping production code? If yes, then it's indeed scary...
> No pure managers: Every leader at Coinbase must also be a strong and active individual contributor. Managers should be like player-coaches, getting their hands dirty alongside their teams.
YMMV, I suppose, but this combined with the AI nonsense just makes the dislike even harder.
I noticed it was especially bad for on-call and incident response; these managers get pulled in to all the incidents because of their status and supposed involvement, but are not particularly useful in those rooms, adding even more cooks to the already crowded kitchen.
Went on for about a year, worse each week, before i left.
Knowing what you don't know and knowing how to get qualified information from people around you makes up for a lot of not having a programming background.
If anything, the managers with technical backgrounds who weren't active programmers tended to significantly underestimate the difficulty of doing something because back in their day, things were different or some such nonsense.
It can certainly overlap with what makes a great engineer, but not most of the time.
This has always been the case where I work, long before AI.
And surely the place you work hired with this in mind. Many places have not, and yet now expect PMs who haven’t coded in years, or in many cases not at all, to contribute to their products’ codebases.
> Over the past year, l've watched engineers use Al to ship in days what used to take a team weeks. Nontechnical teams are now shipping production code and many of our workflows are being automated.
So on one hand they are the most secure business on the Internet and on the other hand YOLO!
Internal tools keep the lights on and allow customer facing code to function!
Operational tooling also isn’t a sexy thing, but it’s vital for any company to function.
But the few years to come are going to be wild for a lot of folks out there.
I don't expect Coinbase to publish a "we're hiring everyone back" in 5 years from now, but I hope at some point media will spot those trends as they'll - I have no doubts - will happen, and propagate that tune.
For the end user it looks like an evil cash-grab, but really it's the company protecting itself from regulatory vengeance.
Your coins frozen with no reason given even internally except for "machine said no" - no one gets any slap on the wrist unless you sue real hard, happen to win, and most likely that'll be just a scratch that won't be noticed enough to change any attitudes.
The Man sees that someone they don't like transferring their coins through the fintech company - that's what those companies are really concerned about, because it would be a punch in the gut the company will feel.
Thus, the incentives. Current social design doesn't punish for false positives (until they hit really high levels), only false negatives.
What licenses of theirs were terminated? Seems to me that the regulatory oversight is a joke.
Just a vague nonsense about compliance, that magickly aligns with padding their float. In reality they are using compliance and regulatory language as a shield to prop up their numbers. They are using KYC/AML to hold your funds hostage, as it's the most plausible explanation that also allows them to legally seize it under a legal sounding explanation. The fact that they do have to perform KYC/AML and there are penalties for not doing so just happen to make it a valid enough sounding excuse for when it's used overly aggressively because it lines up with other goals.
If they move the hair trigger to freeze funds 2x as often as they need to against the innocent false-positives to pass compliance checks, due to a hair trigger, then it falls under plausible deniability and even better when the regulator comes they can say some insane bullshit about how good their KYC/AML is. If they freeze it less often but instead just steal some for a little while and then return it, then it's more obvious a crime has been committed. It's obvious what they're up to.
Of course the KYC/AML/ regulatory officers are probably just pawns in this. The executives in the crypto and fintech space tell these people they need to set the sensitivity up to the 9s which does increase KYC/AML 'true positives' but the unspoken part is that money is now locked up into the company's accounts which creates a moral hazard in their fiduciary duty. They know damn well what that actually does is inflate their float, at the cost of a bunch of false positives. In theory that's satisfying AML because a function of doing so is you trigger more true positives, but in reality it's merely stealing money to increase floats not actually optimizing to meet the cutoffs to keep your license. But no one is actually going to come out and say this. It will probably take a class action suite, which I have little doubt will eventually happen when someone comes out and admits one day that these regulatory compliance triggers were intentionally set on the sensitive side for non-regulatory reasons.
As far as I understand, they're often not allowed to disclose that. E.g.,
https://www.bitsaboutmoney.com/archive/seeing-like-a-bank/
> In the specific case of “Why did the bank close my account, seemingly for no reason? Why will no one tell me anything about this? Why will no one take responsibility?”, the answer is frequently that the bank is following the law. As we’ve discussed previously, banks will frequently make the “independent” “commercial decision” to “exit the relationship” with a particular customer after that customer has had multiple Suspicious Activity Reports filed. SARs can (and sometimes must!) be filed for innocuous reasons and do not necessarily imply any sort of wrongdoing.
> SARs are secret, by regulation. See 12 CFR § 21.11(k)(1) from the Office of Comptroller of the Currency...
It's obvious when someone gets their money frozen for a month only to just have to perform a KYC check that even if the KYC check was legitimate, and these kinds of results are common over years, the delay was a result of a business decision that increased their float.
I think you're conflating the requirements with the BSA with how executives are using it in a hostile way against customers. They can make the deliberate decision to slow down KYC/AML officers and checks after a trigger, while putting them on a hair trigger, while citing secrecy under the BSA. That is the regulatory nonsense under which they are dressing up a business, non-regulatory decision. It's there to provide plausible deniability.
The compliance officer in this case is plausibly just following the law but in reality they're just running cover for increasing the float -- maybe even unwittingly.
They are legally prevented from telling you by the regulators, at least in the US.
Put otherwise, suppose I run a bank and you deposit your paycheck. I decide our reserves are a little low so I set KYC/AML triggers even more sensitive on a hair trigger so that an extra of 0.2% of innocent paychecks get held up an extra 4 weeks (I have also conveniently slow down / underhire customer service) which also causes me to catch 1 or 2 more real criminals. That's not KYC/AML even though that's the mechanism by which I claim to have held it. I'm not bound by the BSA secrecy in such case since the underlying trigger was for increasing the float rather than actually KYC/AML compliance.
------- re: below due to throttling ---------
I am accusing fintech and crypto businesses in general of committing mass fraud through intentionally setting KYC/AML on an artificially sensitive trigger to increase their floats, yes.
I do not know if Coinbase specifically does that -- my limited experience with them is they are one of the few fintech companies that hasn't fucked me over.
I have an absolutely massive body of evidence that leads me to that conclusion, through my own transactions and frozen funds as well as studying a wide amount of CS complaints that show evidence that KYC/AML checks on frozen funds are stalled for weeks to months without any plausible explanation of what is happening which is not a KYC/AML regulatory action but rather an intentional choice to raise floats for free interest and padding their numbers.
Of course what's extraordinarily ironic here is when fintech claims you violate KYC/AML then "law says we provide no evidence" but if you turn around and accuse them then the industry shills will scream "without evidence" while simultaneously saying your counterparty doesn't have to provide it! They are hypocrites! The very people accusing you without evidence betray their own sins accusing you of same! They were the ones that set the bar that they don't need to present evidence, not me.
Just one rebuttal ago, it was explained why it was okay to freeze customer funds without providing any evidence.
Now we are Jekyll and Hyde'ing back to getting upset about an accusation without evidence. That was a crux of my entire case! I am being damned, for allegedly, using the same standard of evidence as my accuser (though I dispute I am presenting as little as them)!
If that's your case, then you have concluded and rested my case for me in my favor. The entire KYC/AML argument falls apart because it fails your requirement to present evidence at accusation.
Either accusation without present evidence bad, in which case KYC/AML as it is used in stalling people for weeks to months without providing evidence totally falls apart and I rest my case -- or -- that standard of evidence is OK in which I've at least presented as much or more evidence as fintechs provide in their accusation against customers (nothing) and in that instance I also rest my case.
Whichever of these last two Jekyll and Hyde responses we pick, it isn't working against me.
If you look at Coinbase in 2020 they had roughly 1,200 employees. By 2022 they had roughly 4,500 employees.
They over hired and now they are pairing back, this is all it is.
It has poisoned more than one company (especially startups). Its the "go big or go home" mentality. The "the market is ours to take if we just put more fuel to this fire" mentality.
was in a startup once (Reid was an investor). The CEOs bought into blitzscaling, told the whole company we're going to "blitzscale". Hired 2 directors (with 0 reports). They had amibitions of hiring 100s of engineers. Then reality struck. There was no revenue and no path to revenue (because early days of AI). The blitzscaling was "paused". The directors had 1 EM report to them each. You can imagine what happened in the months after that.
It's because crypto goes in a cycle and now it's down. You should expect layoffs from them again in 2029/30.
I mean, I want to work... and I absolutely despise the push to keep dev wages down, even at higher levels. But the reality is, at least from my own experience, that most software orgs and projects are actually over-staffed and would operate better with fewer, more experienced staff. Rather than filling hundreds of butts in seats.
Experimenting or cost-cutting? Are these one-person "teams" you g to be paid more for having multi-domain roles regardless of how fast AI can churn out pseudo-MVPs?
We're going to see this become a trend beyond Coinbase, IMO. The idea that companies just want employees to be more productive is a farce. The C-suite would prefer to make no profit, have few to no employees, and get personally richer in the process.
Plenty of us here can conceive, design, architect, build, ship and own things from soup to nuts, and feel a lot more invested in the result as a consequence.
If the compensation is good, and it feels less shackled and less bureaucratic, is that necessarily a bad thing?
> Non-technical teams are now shipping production code
if you vibe code financial systems this cannot mean anything good for your business
With the amount of tech leaders blabbering about this, I came to the conclusion that the profession of the future is going to be Security Engineer.
What I'm really intrigued by is the non technical staff deploying code to production. Now that's a gamble I want to see in the crypto space.
4 months basic severance pay + 1 month for 2 years emploument is nice? so total 5 months severance after 2 years of working for them or only 6 months after 4 years
let me guess you are from US if you think this is nice, as European I would say this is fairly standard, nothing to brag about, 3 months should be bare minimum by law
That doesn’t make one model universally better. There are clear tradeoffs on both sides. But it is part of the equation worth considering in response to your point.
All I wanted to say was I don't find 4 months something particularly "nice" as European, though I am sure there are even some Europeans who would find it nice since they work for crappy companies in countries with less protection, so they are in lose lose situation, no US benefits (salary/taxes), no Europe benefits (severance pay/notice period).
It'd be looking a gift horse in the mouth to whine about "well they get 22+% at XYZ"
If you're making 2x or more what a European developer makes, you're responsible for your own emergency fund. You ignore that at your own risk. I'll take that trade.
I must live in a different Europe then. I'd say this would be EXTREMELY generous for Europe.
1. you get fired with 2 months notice period and they will tell you, you don't need to bother to come anymore = 2 months of severance, you can sit at home, look for job for 2 months with full salary
2. on top of this you will get also extra 2 months severance pay
so in total de facto 4 months of severance pay , but I understand shitty companies will expect you to work even during notice period (especially if they are firing you) and somehow expect you will be delivering same results, smarter companies know the reality when they are firing someone and just tell him not bother coming anymore, this was my case in last 1-2 jobs I've had more than 10 years ago when I was still employee (plus they wanted to give me 1 month severance pay, but I argued about years I worked there and certain operation practices which could be published, so got 2 months, unlike my less assertive colleagues), I'm nowadays contractor/freelance for companies outside Europe so no law protection for me
my wife is always employed as employee and got fired this winter under conditions I mentioned in point 1&2 and got 2+2 months after 1 year of work, two jobs ago she was fired without severance but didnt need to work during notice period
plus I've found funny mention of the 6 months COBRA as some benefit, you are covered by insurance in Europe regardless of your job status whether employed or unemployed you are always covered by universal healthcare
https://www.cryptopolitan.com/user-tricked-grok-bankrbot-to-...
Oof. That smacks of hubris and valley-buzzwordism.
> Leaders will own much more, with as many as 15+ direct reports.
> Every leader at Coinbase must also be a strong and active individual contributor.
So, a manager who's managing 15 people AND expected to ship -- that sounds awful for both sides.
Right?? I saw that too. My first thought is that any good managers left will be racing for the exit. You can't fake "managing 15 people" with AI. You have to actually have the 1:1s and do the performance calibrations. How are they going to have time left for IC work??
They'll switch to async communications for everything, and ideally have a bot that answers Mm-humm like a psychologist on his chair.
More seriously, the solution is to move to a flatter org, but that's a drastic change with unknown consequences for most companies.
I feel like managers should be able to contribute. Managing a good team isn't that hard, though managing a bad team (or a good team in the midst of a ton of bad processes) is a nightmare.
Notable is what they're not doing--annual reviews. This duty is now handled by the all seeing "intelligence" machine that can evaluate employees in real-time.
Freedom for who, exactly? Coinbase's executives, I suppose.
If you're a leader and you've said that your company is too big and have to downsize by 10+%. This is a you're the problem.
Firstly, the business needs to have active business and new initives. If you are not supporting that: You've failed.
If you're so inefficient that you need that extra 14%, you made that mistake.
If you "overhired" and didn't find a way to use that extra capacity to find the business.. you are the problem.
If you say that AI has changed your business, that 14% more people means 14%*the AI lift of more capacity to accomplish greater things.
It's not the talent, and it's not the talents' fault for your issues. A lot of people assume that layoffs means removal of bad performers. The reality is not there.
Since roughly 2018 I reckon, at least.
Can anyone share how and when they see market is getting in a better shape?
Specifically I am curious, how we would be working with AIs even if market gets in a better shape
Have some empathy for people losing their jobs because of upper management’s incompetence.
Have some empathy for the misled retail investor that gambled their savings to thieves?
Did I miss some news where Coinbase literally stole people’s money, or at least did something that could reasonably be called evil?
You know, hire, stop hiring, then start firing
However, do we really need them to AI-wash the fact that as a lot of companies, this company over-hired during ZIRP? Do we really need them to AI-wash the fact that the crypto hype is gone, therefore their business is smaller? “Company as intelligence” and “AI productivity” are just buzzwords so their stock price doesn’t suffer.
Companies above a certain scale- let's use Dunbar's Number as a good threshold- need full time managers to handle the necessary information flow through the company. Middle-manager is actually something that AI can't do yet, because their main job is to figure out what things everyone else around them needs to know (inside and outside their team), which requires a theory of mind that current LLM's just don't have. Is this policy change worth telling your team about? Is this feature creep worth telling other teams about? That is the decision that managers have to make dozens of times a day, and it requires a model of what various people know, to know whether this is important to them or not.
Today, not a single mention in that email.
I can't help but feel that there is a superficial chasing of trends at play here (adopting the same playbook that Block used earlier).
Question is, where will we all be in 3 years from now?
As a security engineer this statements fills me dread.
The Tether narrative has just been broken and Iranian assets have been frozen:
https://edition.cnn.com/2026/04/24/politics/us-freezes-crypt...
This of course means that the primary use case of Bitcoin, sanctions' evasion, is no longer secure.
It becomes clearer and cleared that Lutnick and Trump are actually the deep state and the big boys mean it. Further crackdowns on China and Russia are coming and it does not look good for Bitcoin.
But by all means, cite AI nonsense as a favor to fellow founders to pump up their valuations.
Maybe you don’t have to make comments like this?
It takes one massive breach and theft from the exchange as a result of this and they are cooked.
Exchanges never recover after billions of dollars get stolen from the exchange.
Generally engineers are not well placed to be building UIs.
Rookie mistake by your AI; otherwise it did a flawless job, and the glaze it's been giving you is 100% accurate. You are the bestest.
If one more AI calls me "insightful" or says that my question "really cuts through the noise" or "gets to the heart of the matter"...
Heh. This is the kind of phrasing that just begs to be misunderstood.
And I suspect that over the coming year, we'll be watching the consequences of this unfold.
Good luck to those (human) teams when the briefness stuff hits the fan thanks to an AI hallucination... oh wait, the Active Individually-contributing leaders will be there to lend a hand, right?
Why would non-programmers need to ship production code in a financial context?
As a reward, people driving the productivity have now received a reduction in their colleague pool.
Crypto is always about to take off. If the company is sitting so well, and is facing imminent growth, then they don't need to do layoffs, they want to. Or the company is not sitting so rosy and they're not too sure about their future.
> Non-technical teams are now shipping production code
What could go wrong?
The AI bullshit is CEO feel-good talk.
I think this will be commonplace in the not too distant future.
Some disasters will happen, just like they did before AI. Skeptics will gleefully point out these failures while more and more non-technical teams ship code.
Technical teams still need to design and build out the infra.
Technical teams still need to think about how to design and secure the backend systems.
The only thing that changes is that non technical people can now build UIs and internal tools on top of your core assuming you have solid APIs, MCPs, docs, and components to build on top of.
If you're allowing non-technical teams deploy mission critical software then you're not doing it right.
No one wakes up the frontend dude at 2am because the JS is doing something weird in the browser... All of the core infra and backend should still belong to technical teams.
I'm sure Coinbase understands this and when they say non-technical people are shipping software they don't mean they're vibe coding terraform infra and deploying full-stack user-facing applications.
And due to this it deserves even more mockery.
I was shocked at how easy it was to train and develop a model that can replace senior leadership in a company.
The CEO was the easiest. I simply loaded the model with as much corporate jargon, double talk and the ability to talk down to people. The model nearly wrote itself.
Then simply ingesting the Wall Street Journal, Barrons, Financial Times and SEC 10-K reports and annual reports, I was able to compile the perfect CFO. It was able to spit out regulatory reports, answer questions on investor calls.
Strangely, the component of the model I had write in house was the ability to give up part of their bonus to keep key people employed. Seems in all of those financial reports, there were no examples of anyome that the model could leverage.
Geeks who didn't even stand near professional sports should really shut up about anything sport related, lol.
I would really like to see professional, established coach running around with young prodigies on a peak of their biology.
> - AI-native pods: 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.
And AI clowns will cheer and applaud this, not seeing that they're now doing the job of 5(!) people with the same salary. Why is nobody talking about this?
Also, I find it really bizarre that those neo feudal lords see their companies as just a life stock to count. They don't even count people, just see them as numbers to reduce/scale up. Modern tsardom, but instead of being tied via official decree you're now tied by your lifestyle and family.
"Some of you may die, but that is a sacrifice I am willing to make"
The crypto market winter that started in Q4 last year led to Coinbase's ~worst quarter ever ($667M loss). Crypto has not recovered. Coinbase has done nothing to stem the outflows. That same quarter HOOD showed a net profit of $605M; and showed a $346M profit last week. COIN and HOOD are two very similar companies.
COIN's earnings are in two days. They preceded the earnings call with layoffs, which is always a bad sign. And HOOD's net income has dropped by like 40%, though they're still at least profitable. You should be prepared for COIN to announce a similar drop; except, COIN wasn't even profitable before. Its going to be a bloodbath.
Edit: it’s because the loss is an accounting loss due to mark to market adjustment, while the company is operationally profitable.
I assume that’s still no great, but not nearly as dire as the reported loss suggests, and not a sign of a dying company.
Player-coach used to be a thing in professional sports a long, long time ago. There's a reason you don't have it anymore. A coach can't be expected to take the long-term view while also expecting to contribute. Most examples were players near the end of their career and they didn't tend to do very well.
The only place you see it is in fun adult leagues. Perhaps the message then is that Coinbase wants to be less professional and more amateur-like?
With very rare exceptions, professional athletes are just not as good athletically at 40/50 as they were at 20. They may be smarter in some ways--which maybe means they'd be better as coaches.
I'm not sure this carries over well to engineering unless you mean that the young people are willing to grind for a lot more hours on nights and weekends.
not sure if focus should be on athletic sports. Chess is better analogy to software I think.
Actually, these scenarios happen in hockey as well. Teams will pick up character guys who have been through it all who are expected to contribute more off ice than on it. Corey Perry is one who comes to mind lately but they're never given a "coach" title. It's entirely possible though that these players may be expected to be a go-between guy between the coach and younger players to help them manage the pressure or to help with encouragement. They're definitely not getting prime minutes though.
I guess that would possibly be the same expectation of a manager who still codes. I can't see them doing anything critical. It's likely picking up some minor bugs or nice-to-have, low priority feature work. I was a manager before and while I didn't reach 15 reports, I was up to 12 at one time. There's just really no focus time that you need for coding. Maybe that's a bit different with AI but even then you still need to find time to make changes and validate. And that's time that takes away from other higher impact things that you could be doing for the team.
And I don't think they're trying this thing that Coinbase is trying either.
> Also, I find it really bizarre that those neo feudal lords see their companies as just a life stock to count. They don't even count people, just see them as numbers to reduce/scale up. Modern tsardom, but instead of being tied via official decree you're now tied by your lifestyle and family.
People don't work somewhere like Coinbase if they're concerned about morality or mitigating the harms done to society.
The GP post describes a common problem in _most_ workplaces in the market today. It’s not specific to crypto, AI, or anything in between.
It is not specific to a crypto company. But the element of it being a crypto company cannot be ignored. Crypto companies are not like ordinary businesses. They have very unique qualities to them. Same with crypto industry as a whole. Ever been to a crypto conference for example? I have read about and have seen the videos. These things have the highest concentration of the scammers and the gullible any one place.
Actually, it sounds like you’re the one who hasn’t been to a crypto conference :)
This is a really strange nit. You are aware it's an analogy about skill and role. To reduce this to being about biology and the impacts of senescence on ability is weird, and doesn't really apply here.
E.g. you can't just spew nonsense like "let's work together like a bee hive, everything for the Queen/CEO, no matter the personal cost to an individual" without others pointing out the stupidity of comparing humans with bees.
You can't just come up with a desirable adjective and start coming up with random scenarios in which those characteristics may occur. "Let's make the company strong as a gorilla, big as an elephant, smart as Von Neumann, bright as a Sun, as courageous as young guys from youtube fails compilations." This makes no sense whatsoever.
I'm remember of when I went out for drinks with a startup consultant friend and she mentioned one founder she spoke with refer to his staff as "biological units" when addressing use of proceeds to hire additional staff.
A company_is_ the sum of its people, their talents and aligned behind a mission statement.
This is so far misguided, I can't help but think this 'biological unit' of a founder won't last long.
Like the guy who "just gets math" is often NOT a good teacher.
And then this person leaves, leaving no documentation or workflow. That's ok though, another ai agent will pick up right back and add slop on top of that until the codebase is a black box interacting with another black box.
Oh and this company handles other people's money? That's going to end well.
https://en.wikipedia.org/wiki/Unionization_in_the_tech_secto...
The benefits of unionization extend beyond this particular situation or company.
They can help shift the balance of power back to the employee and help them guard against being squeezed by their employer to produce more or take on more work for less benefits or compensation.
American tech workers have been fortunate to avoid such aggressive practices, but working conditions will only deteriorate from here, with workers crushed between LLMs and offshoring.
Reggie Dunlop is ready for duty, he'll get the job done.
The CEO is looking at revenue and at costs. He can see what will happen if current burn rate isn’t reduced. Doesn’t it come (in part) to numbers, which must be reduced/scaled as needed? (Along with other costs)
sounds stupid to me
for example, the last obvious inefficiency i remember was sys admins. the most worthless, self aggrandizing group of people at any company. got wiped out mostly (the best work for the cloud engineering companies), and i think it was for the better!
engineers today handle deployments, and it is far better.
Too bad AI is not about efficiency. It's about headcount reduction, which is exactly what Coinbase is doing here. AI just gives them plausible cover.
Feels like a problem that will solve itself. There are more cars today than people ever had horses.
That could be an incentive to keep companies small, but high-scale companies do have unique benefits to society.
This is absolutely not true. It never has been at any point in history. Not even CEOs would claim such a thing until the 1980s, and they were wrong then as now.
Even today, Costco and other businesses are thriving.
Stop drinking the Koolaid.
Exactly. People are too naive these days
I don't think anyone is applauding this. The only people applauding stuff like this are the CEO's of Anthropic (because that means more tokens/profit). Most other CEO's in big tech have toned down the rhetoric big-time.
The job of 5 people being done with the same salary is a function of the job market. It's an employers market now. So stuff like this happens. If you had an employee's market this wouldn't happen.
fwiw - and this is a separate topic. If health insurance were de-linked from employment most people would flee the job market on their own.
That would be visible in all major markets outside of the US, no?