BitGo Cuts Workforce Amid Pivot to AI
BitGo, a prominent crypto custody and infrastructure company, has announced significant workforce reductions, joining a growing trend among technology firms to streamline operations and pivot towards artificial intelligence. The company is cutting nearly 15% of its staff, according to a statement from co-founder and CEO Mike Belshe.
In a tweet shared on Thursday, Belshe explained the decision, stating, “The ecosystem has evolved, and the way we build financial services has changed dramatically.” He elaborated that to maintain a competitive edge for its clients, BitGo must become “sharper” and more focused. The company’s strategic direction will now emphasize “security, trading, stablecoins, settlement, and AI-powered infrastructure.”
While BitGo did not disclose the exact number of employees affected, its 2025 annual report indicated a workforce of 603 full-time employees, suggesting approximately 90 roles may have been eliminated. Belshe characterized the layoffs as a “one-time action” and expressed confidence that further cuts are not anticipated, noting that the company’s job board still features numerous open positions.
These reductions come several months after BitGo’s initial public offering in January, where it priced its shares at $18, raising approximately $213 million and valuing the firm at over $2 billion. Despite a substantial 112.6% surge in first-quarter revenue compared to the previous year, reaching $3.8 billion, the company also experienced an widening of net losses.
The market reaction to the news was largely negative. BitGo shares, trading under the ticker BTGO, saw a nearly 5% decline on Thursday, closing at $4.80. This represents a significant drop of approximately 73% from its IPO price.
BitGo’s move aligns with a broader pattern of staff reductions across the cryptocurrency and technology sectors in 2026. Earlier this year, Jack Dorsey’s Block eliminated around 4,000 jobs, roughly 40% of its workforce, citing increased reliance on automation and AI tools. In May, Coinbase reduced its staff by 14%, while crypto data firm Dune let go of a quarter of its employees. Robinhood also trimmed its workforce by 10% in June amid a downturn in crypto revenue.
The wider tech industry has seen over 120,000 job cuts since the beginning of the year, with major companies like Microsoft and PayPal identifying AI as a key factor driving these downsizing efforts. However, the extent to which AI is the sole or primary driver of these layoffs remains a subject of ongoing debate, with some analysts suggesting it may serve as a convenient justification amidst a challenging market environment.
Leave a Reply