BitGo, the crypto custody and infrastructure provider, is the latest firm to trim headcount as the industry pivots toward AI-driven products. Co-founder and CEO Mike Belshe announced on Thursday that the company is cutting nearly 15% of its workforce — a move detailed in a tweet and in a filing with the U.S. Securities and Exchange Commission.
Belshe framed the layoffs as a strategic shift: “The ecosystem has evolved, and the way we build financial services has changed dramatically,” he wrote, saying BitGo will concentrate resources on “security, trading, stablecoins, settlement, and AI-powered infrastructure.” The company did not give an exact headcount for the cuts; BitGo’s 2025 annual report lists 603 full-time employees, suggesting the reduction could affect roughly 90 roles. Belshe described the move as “a one-time action” and said the company does not expect further reductions. Its careers page still shows dozens of open positions.
The timing comes months after BitGo’s January IPO, which priced at $18 per share and raised about $213 million, valuing the firm at just over $2 billion. BitGo reported a 112.6% year-over-year revenue jump in Q1 to $3.8 billion, though losses widened — and investors appeared unconvinced. BitGo’s stock (BTGO) slid nearly 5% on Thursday to close at $4.80, roughly 73% below the IPO price, according to Yahoo! Finance.
BitGo’s cuts echo a broader pattern across crypto and tech. Major names have announced layoffs this year, often citing AI and automation as drivers:
- Block (Jack Dorsey’s company) cut about 4,000 roles (~40% of staff) in February, pointing to greater reliance on automation and AI tools.
- Coinbase reduced its workforce by about 14% in May.
- Crypto analytics firm Dune let go of roughly 25% of its staff.
- Robinhood trimmed about 10% a month later amid a slump in crypto revenue.
Across the wider tech sector, more than 120,000 jobs have been cut so far this year, with companies including Microsoft and PayPal also pointing to AI-led changes in their operations.
Whether AI is the primary cause of these layoffs — or a convenient explanation amid market pressure — remains disputed. For BitGo, the message is clear: the company is reallocating talent and capital to areas it expects will define the next phase of crypto infrastructure, even as it navigates investor skepticism and the fallout from a challenging market.
Read more AI-generated news on: undefined/news
