REALITY CHECK | This ‘Big 4’ Crypto Custodian and Infrastructure Company Lays Off Workforce as AI Reshapes Sector

Crypto custody and infrastructure provider, BitGo, has laid off nearly 15% of its workforce as the newly public company reallocates resources toward

• artificial intelligence,
• stablecoins, and
• institutional financial infrastructure,

becoming the latest digital asset firm to cite AI as a driver of corporate restructuring.

Chief Executive, Mike Belshe, described the cuts as a ‘one-time action,’ saying the company would focus investment on security, trading, settlement, stablecoins and AI-powered infrastructure as the digital asset industry evolves. Employees affected by the restructuring were informed before the announcement which was also disclosed in a regulatory filing.

The move comes after the firm reported its Q1 2026 losses had more than doubled amidst falling bitcoin prices and costs tied to its public listing weighed on results.

The subsequent layoffs reflect a growing shift across the crypto sector where firms are increasingly replacing broad hiring with targeted investment in AI-driven automation and engineering roles rather than expanding headcount.

BitGo is not alone.

In early 2026, Coinbase eliminated roughly 14% of its workforce as part of a restructuring aimed at flattening management layers and accelerating AI adoption with CEO, Brian Armstrong, outlining plans for leaner, AI-assisted teams capable of operating with fewer employees.

Other crypto companies have followed a similar path.

Crypto.com, Block and several fintech firms have also tied workforce reductions to AI deployment and operational efficiency reflecting a broader technology industry trend in which automation is increasingly replacing routine functions while companies continue hiring for specialized AI, security and infrastructure roles.

Unlike the crypto layoffs of 2022 and 2023, which were largely triggered by collapsing token prices and bankruptcies following the FTX crisis, the latest wave is occurring during a period of renewed institutional investment and stablecoin growth. Instead of cutting costs for survival, many firms are restructuring to redirect capital toward AI capabilities they see as essential for the next generation of financial infrastructure.

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