Sudden Coinbase Layoffs Leave Indian H-1B Workers With Just 60 Days

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Sudden Coinbase Layoffs Leave Indian H-1B Workers With Just 60 Days

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Coinbase’s 14% workforce reduction affects 700 employees globally, triggering financial uncertainty
Laid-off US employees receive a minimum 16 weeks of base pay in severance, plus additional benefits
Indian employees face adjusted severance packages based on local laws, amid concerns over transition support

Following Coinbase’s recent decision to lay off 14% of its staff as it refocuses on incorporating artificial intelligence, attention is now turning to the impact on its Indian employees. This includes those working in India and those in the US who are employed through company-sponsored visas, as they are particularly affected by the changes.

As an analyst, I’m observing that Coinbase has implemented layoffs impacting around 700 employees with immediate effect – access was revoked right away, with no transition period offered. Armstrong, in a company-wide communication, admitted this approach would likely feel abrupt and severe, but he justified it as a necessary step to safeguard customer data, framing it as a matter of responsible decision-making.

If someone in the US works on a visa, especially an H-1B, losing their job can create problems much bigger than just losing income.

The severance package

In an email, Armstrong stated that US employees who are laid off will receive at least 16 weeks of their regular salary, with an extra two weeks of pay for each year they’ve been with the company. They’ll also receive any stock options that were scheduled to vest next, and six months of continued health insurance coverage through COBRA.

This severance package of 16 weeks is an improvement over Coinbase’s previous layoffs in June 2022 and January 2023, which offered a minimum of 14 weeks.

Coinbase stated that employees outside the U.S., including those in India, will receive benefits packages similar to those offered in the U.S., but tailored to comply with local laws and any required consultations. The company hasn’t released details about the exact benefits for employees in India.

Armstrong stated that employees with work visas will receive extra help during this change, but he didn’t specify what that help would be. This lack of detail is currently causing the most worry.

Coinbase’s India footprint

Coinbase has a significant operation in India, with teams located in Bengaluru and Hyderabad. They currently employ around 101 people in Bengaluru and 97 in Hyderabad. The company began building its presence in India in 2022, opening its Hyderabad office as one of its first international locations outside of the United States.

Most of the affected employees in India work in engineering, customer service, and ensuring regulatory compliance. However, a bigger worry is for Indian citizens who moved to the U.S. with Coinbase’s help on H-1B or L-1 visas, as their employment status could impact their ability to remain in the country.

The 60-day visa clock

This is where the situation gets particularly difficult for Indian workers in the US.

If someone in the US on an H-1B visa loses their job, they typically have up to 60 days to find a new employer to sponsor their visa, switch to a different visa type, or leave the country, according to a report by the Economic Times. However, this grace period isn’t automatic and immigration authorities can reduce or even deny it.

Unlike the initial H-1B visa process, transferring an existing H-1B visa isn’t limited by the annual cap, so a new employer can submit a transfer request whenever they’re ready. However, it still requires a few steps: getting approval from the Department of Labor (through a Labor Condition Application), filing a Form I-129 with USCIS, and, of course, having a job offer from a company that’s actively hiring and willing to sponsor the visa.

The cryptocurrency market is currently struggling – Bitcoin’s value has fallen over 30% from its high last October (over $126,000), and Coinbase reported a $667 million loss at the end of last year. Because of this, fewer crypto companies are sponsoring work visas, making it even harder for skilled workers to enter the field.

Immigration lawyers are urging workers who are impacted to start looking for new jobs and seek legal advice right away. There’s a strict 60-day window to take action, and delaying even a short time could mean the difference between remaining in the country legally and having to leave.

As an analyst, I often see how critical H-4 visa status is for families. It’s a situation where everyone’s legal standing is directly linked to the H-1B visa holder. If the primary visa holder experiences any issues – like losing their job or changing status – it immediately affects the entire family’s ability to stay in the country. It’s a really precarious situation, as one issue can impact everyone.

The bigger picture

Coinbase anticipates spending $50 to $60 million on severance packages, as detailed in a recent filing with the Securities and Exchange Commission. The majority of these costs are expected to occur during the April-June quarter of 2026.

These layoffs are part of a larger restructuring at Armstrong. Beyond simply reducing the number of employees, the company is streamlining its management structure, limiting it to five layers below the CEO and COO. They’re also eliminating positions that are purely managerial and shifting towards smaller, self-sufficient teams – sometimes even individuals – who will use AI tools to handle all aspects of a project, from engineering and design to product development. Armstrong calls these teams ‘AI-native pods’.

According to Mizuho Securities analyst Dan Dolev, the recent cuts are probably due to the slump in the crypto market, and the focus on AI is partially a way to mask that fact, as he told Bloomberg.

Coinbase has reduced its workforce before, laying off around 1,100 employees in June 2022 and another 950 in January 2023 during the previous downturn in the crypto market. However, these current cuts are happening while Coinbase is also achieving significant progress. The company was added to the S&P 500 in May 2025, finished acquiring Deribit for $2.9 billion in August 2025, and received preliminary approval for a federal trust charter from the OCC in April 2026.

These layoffs are yet another sign for India’s tech and crypto workers that the global tech industry slowdown isn’t ending anytime soon. Those in the US on work visas are facing particularly urgent challenges, as their time to find new employment is limited.

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2026-05-06 14:46