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…