LocalManChecksIn

[LocalManChecksIn @LocalManOpines]

@sahilkapur Comparing losing to peak Lebron in the conference finals to losing in the first round to “Playoff P”. Top quality analysis.

[LocalManChecksIn @LocalManOpines]

@GergelyOrosz @Pragmatic_Eng The CEO went out of his way to blur the lines about what was actually happening. Why say “non technical members are shipping code straight to production” if you are referring to marketing copy on a website?

[LocalManChecksIn @LocalManOpines]

Cutting 14% of the company and announcing it with a fully AI generated wall of text. Here’s why it matters:

[Brian Armstrong @brian_armstrong]

This is an email I sent earlier today to all employees at Coinbase:

Team,

Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the future.

Why now
Two forces are converging at the same time. We need to be front footed to respond to both.

First, the market. Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm. Crypto is also on the verge of the next wave of adoption, with stablecoins, prediction markets, tokenization, and more taking off. However, our business is still volatile from quarter to quarter. While we've managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth.

Second, AI is changing how we work. Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day.

All of this has led us to an inflection point, not just for Coinbase, but for every company. The biggest risk now is not taking action. We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native. We need to return to the speed and focus of our startup founding, with AI at our core.

What this means
To get there, we are not just reducing headcount and cutting costs, we’re fundamentally changing how we operate: rebuilding Coinbase as an intelligence, with humans around the edge aligning it. What does this mean in practice?

- Fewer layers, faster decisions: We are flattening our org structure to 5 layers max below CEO/COO. Layers slow things down and create coordination tax. The future is small, high context teams that can move quickly. Leaders will own much more, with as many as 15+ direct reports. Fewer layers also means a leaner cost structure that is built to perform through all market cycles.

- 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.

- 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.

In short: 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.

To those who are affected
I know there are real people behind these decisions — talented colleagues who have poured themselves into this company and our mission. To those of you who will be leaving: thank you. You’ve helped build Coinbase into what it is today, and I am sincerely grateful for everything you've done.

All impacted team members will receive an email to their personal account in the next hour with more information, and an invitation to meet with an HRBP and a senior leader in your organization. Coinbase system access has been removed today. I know this feels sudden and harsh, but it is the only responsible choice given our duty to protect customer information.

To those affected, we will be providing a comprehensive package to support you through this transition. US employees will receive a minimum of 16 weeks base pay (plus 2 weeks per year worked), their next equity vest, and 6 months of COBRA. Employees on a work visa will get extra transition support. Those outside of the US will receive similar support, based on local factors and subject to any consultation requirements.

Coinbase prides itself on talent density. Our employees are among the most talented people in the world, and I have no doubt that your skills and experience will be highly sought after as you pursue your next chapters.

How we move forward
To the team that is staying, I know this is a difficult day. We’re saying goodbye to colleagues and friends you've been in the trenches with. But here’s what I want you to know as we move forward together:

Over the past 13 years, we have weathered four crypto winters, gone public, and built the most trusted platform in our industry. We’ve made it this far by making hard decisions and by always staying focused on our mission. This time will be no different – nothing has changed about the long term outlook of our company or industry. And most importantly, our mission has never been more important for the world. Increasing economic freedom requires a new financial system, and we’re building it.

The Coinbase that emerges from this will be more capable than ever to achieve our mission.

Brian

[LocalManChecksIn @LocalManOpines]

@GergelyOrosz This is a bit lame. Most of them report to a single
person who you’d imagine is accountable for what happens under them. Why absolve the LT of direct accountability by blaming it on no one holding a random title?

[LocalManChecksIn @LocalManOpines]

@jdcmedlock Or even simpler (and they’re demonstrating it adequately in the replies) - I’d rather not live in a world filled with dudes who picked red.

[LocalManChecksIn @LocalManOpines]

@GergelyOrosz Didn’t Google do this a couple of years ago?

[LocalManChecksIn @LocalManOpines]

New kind of guy just dropped - who gets radicalized by preprint New Yorker articles and decides to firebomb a tech CEO’s house.

[austin petersmith @awwstn]

entirely unsurprising. @NewYorker is complicit in this

[LocalManChecksIn @LocalManOpines]

@matvelloso Well and the fact that all these guys are out here saying “nothing to see here” is not curious at all. It’s not just Frank, other high profile msft posters on here are doing it too.

[LocalManChecksIn @LocalManOpines]

@AY_Orbach Yup he sounds real excited

[LocalManChecksIn @LocalManOpines]

@paulg @shaunmmaguire Speaking up against your leaders is the most American thing one can do.

[LocalManChecksIn @LocalManOpines]

You, a rube: quidditch sounds fun

Me, professional sports understander:

[Everything Price Sufferer (but especially eggs) @agraybee]

I don't think JK Rowling really understands sports as a concept because what do you mean individual players can bring their own vastly superior equipment that gives them an advantage.

[LocalManChecksIn @LocalManOpines]

@tomwarren Please share some palace intrigue. Hasn’t Pavan led Windows for multiple years now? What’s with the sudden Road to Damascus revelations? Are they blaming it all on Rajesh?

[LocalManChecksIn @LocalManOpines]

@LindseyGrahamSC Pro tip : try having these discussions with them before starting a war of choice next time.

[LocalManChecksIn @LocalManOpines]

@kewgardens1 @Alyash89724625 @gbrumfiel @matthew_petti Bro lost track of which country’s school children are ok to bomb

[LocalManChecksIn @LocalManOpines]

I tried to deploy my capital losses to my landlord and he kicked me out of the apartment. Thanks Chamath.

[Chamath Palihapitiya @chamath]

@nick_vladkis @troyhouse Then you generated capital losses. Did you use those yet??

[LocalManChecksIn @LocalManOpines]

Sending my kids to die in the middle east because the Trader Joe’s cashier said happy holidays.

[LocalManChecksIn @LocalManOpines]

Hey ralphie do you have any zingers about the service members who died in Iran today?

[Ted Cruz @tedcruz]

Were your friends Germans wearing Nazi tattoos like you?

[LocalManChecksIn @LocalManOpines]

What did you think work life balance meant? vibes? papers? essays? Losers.

[Ursula von der Leyen @vonderleyen]

Following the ongoing situation in Iran, I am convening a special Security College on Monday.

For regional security and stability, it is of the utmost importance that there is no further escalation through Iran’s unjustified attacks on partners in the region.

[LocalManChecksIn @LocalManOpines]

Oh SamA expressed a strong desire, did he? Did he do it through a strongly worded letter? Did he pass a UN resolution about it?

[roon @tszzl]

most important part of this
>We are asking the DoW to offer these same terms to all AI companies [...] We have expressed our strong desire to see things de-escalate away from legal and governmental actions and towards reasonable agreements.

[LocalManChecksIn @LocalManOpines]

Meanwhile, Nikita’s boss is telling us “MacroHard” will replace Azure through the power of AI.

[Nikita Bier @nikitabier]

@DCinvestor @X We don't have the capacity to support more than two colors right now. But feedback noted: we are looking into lightening the black on web.