This is the most layoff-prone job in tech right now

Coinbase CEO Brian Armstrong announced that the company would lay off 14% of its workforce and eliminate the role of 'pure managers,' according to a letter to staff. Armstrong's letter stated that 'pure managers' — those with no direct technical or product responsibilities — would no longer have a place at the company, as AI systems increasingly handle tasks like performance reviews and resource allocation.

The layoffs are part of a wave of reductions across the tech sector, with companies citing automation and artificial intelligence as factors in restructuring. The Coinbase cuts follow a pattern seen at other firms, where 'flat' organizational structures are prioritized over traditional hierarchies.

Coinbase previously cut 14% of its workforce in May 2026, with Armstrong at the time citing a 'downturn in the crypto market' and AI 'fundamentally changing how the company operates.' The latest move deepens that restructuring. Armstrong did not specify which AI systems would replace the eliminated managerial functions, but the announcement aligns with a wider industry shift toward automating middle-management tasks.