Coinbase Global (COIN) said Tuesday it’s letting go of 700 employees in the coming weeks.

The move, which amounts to a 14% reduction in the crypto firm’s headcount as of May 1, is intended to manage operating expenses “in response to current market conditions” and “optimize the Company’s operations for the AI era,” according to a regulatory filing.

“Two forces are converging at the same time,” CEO Brian Armstrong said about the restructuring in social media post on X, adding, “We need to be front footed to respond to both.” In addition to the cuts, Armstrong said Coinbase aims to have fewer “pure managers,” by shrinking its organizational structure to a maximum of five layers between top executives and all of the firm’s remaining 4,300 workers.

Shares of Coinbase rose 4% in premarket trading on Tuesday. The stock has fallen 10% since the beginning of January.

Coinbase’s stock has faced pressure so far this year as the crypto market has erased about $1.6 trillion in total market capitalization, according to CoinMarketCap data.

Coinbase also said it estimates total restructuring costs of $50 million to $60 million, with “substantially all” of those costs from employee severance and other termination charges.

The firm expects to recognize all the expenses in its second quarter earnings, though timing could change.

Coinbase reports first quarter earnings results on Thursday afternoon. Analysts surveyed by Bloomberg expect the company to report a 50% decline in adjusted EBITDA from the first quarter of 2025.

David Hollerith covers the financial sector, ranging from the country’s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance