The logic given by Coinbase CEO Brian in the letter mainly consists of three layers: Firstly, the market downturn requires cost reduction and efficiency improvement. Although Coinbase's cash position and business structure are good, and it is also optimistic about the next wave of encryption adoption, such as stabilizing the currency, forecasting the market, and asset token, the exchange business is still greatly affected by the cycle, so it is necessary to adjust the cost structure in advance. Secondly, AI is rewriting the organizational structure of companies. He mentioned that engineers can use AI to complete the work of past teams in a few days, non-technical teams have also started writing production code, and many processes are being automated. Therefore, the company believes that there will not be a need for so many levels and traditional positions in the future. Thirdly, Coinbase needs to become an AI native organization. Specific measures include compressing management hierarchy, eliminating 'pure managers', requiring leaders to be frontline contributors, and exploring AI native small teams, even' one person teams'. For laid-off employees, the letter emphasizes that compensation will be provided: at least 16 weeks of basic salary for American employees, additional compensation based on years of service, next equity ownership, 6 months of COBRA medical insurance, etc. The most noteworthy aspect of this letter is not the "Coinbase layoffs," but rather its packaging of the layoffs as an organizational paradigm upgrade. In the past, layoffs in companies usually referred to "poor market conditions, cost control, and improving efficiency"; But this letter clearly goes further: it expresses a new corporate governance logic - AI makes companies no longer need as many middle, collaborative, and repetitive positions as they used to. This has signal significance for the entire industry: 1. AI is not just a tool, but an organizational structural variable. Previously, when we talked about AI efficiency improvement, it was more about personal efficiency enhancement; Now large companies are starting to implement it in organizational restructuring: fewer people, fewer levels, and fewer purely coordinating positions. People who only know how to manage will become increasingly dangerous. The letter clearly states that 'pure managers are not needed', and every leader must be a player coach. This indicates that future organizations value people who can directly create results, rather than just those who handle processes, meetings, and reporting. 3. The encryption industry will increasingly focus on "human efficiency". Exchanges, on chain applications, and infrastructure companies are already greatly affected by cycles. With the advent of AI, teams will be more inclined towards miniaturization, automation, and high-density talent. The future is not about 'more people, stronger companies', but about' a few high-energy individuals+AI agent systems' being more competitive. 4. This is also a "restart declaration" for the remaining employees to read. The layoff letter appears to explain the resignation arrangement, but in reality, it is telling the people who stayed behind that Coinbase will no longer be the same as before. You can't just adapt to the encryption cycle, you also need to adapt to the AI native working mode. I think in the coming years, many companies will use a similar narrative to achieve organizational compression: market cycles are the trigger, and AI is the underlying variable. For individuals, the real risk is not being replaced by AI, but still staying in the 'job value model without AI'. Worth considering, personal ability requirements are becoming increasingly strict, everyone should act and cherish them!