As crypto company Coinbase is laying off 14% of its staff, the CEO says that they're 'fundamentally changing how we operate, rebuilding the company as an intelligence, with humans around the edge aligning it.'
Wednesday, May 6, 2026 5:16PMAI is changing the way we work -- including more layoffs in the tech industry. The CEO of San Francisco-based Coinbase says the crypto company will lay off 14% of its staff.
In an email sent out to employees Tuesday, the CEO of Coinbase says that they're not just cutting costs or reducing headcount. The company says it's "fundamentally changing how we operate, rebuilding the company as an intelligence, with humans around the edge aligning it.
" Software engineer Shivam Goyal moved to San Francisco from Boston three months ago and now works in Mission Bay. He uses AI every day.
"It's a helping hand. For example, now we have tools like Chat GPT, Anthropic, Claude and everything, they are helping people like us to code better," said Goyal.
"My friends from India, they have been recently laid off," said Goyal. -- a website that has tracked all layoffs in the tech sector since 2020.
"I'm seeing an uptick of tech layoffs in these past few months. A lot of that is being attributed to AI. We've seen that announcement from Meta, from Block, from Amazon, and today from Coinbase," said Lee.
"What leaders and block and today at Coinbase are saying is that in order to take advantage of the power of AI, we need to reduce our headcount and realign our org chart so that the teams are constructed so they can use AI more productively," said Lee. "There's a saying in Silicon Valley, and everybody's heard about it. AI will not take your job. People who know how to use AI will take your job," said Banafa.
SJSU Engineering professor and tech expert Ahmed Banafa says changes are happening because of AI.report by The New York Times, they're talking about $160 million for re-scaling or retraining, which is nothing. It's not going to help anybody in this case," said Banafa.
"I still believe that AI is like a co-pilot sort of thing. And it's not something that could easily replace human beings," he said. ABC7 Eyewitness News asked the experts what positions could be created by AI. Banafa says companies use AI to save time and improve work efficiency.
There will be jobs created, for example, to oversee a team of AI agents.
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