Crypto Industry Hit by Wave of Layoffs as Major Firms Downsize and Embrace AI

The crypto industry cut jobs sharply in 2022–2023 after token prices collapsed, FTX failed and companies unwound excessive hiring during the bull market. In 2026, macroeconomic uncertainty and weaker trading have again weighed on the sector, with Bitcoin falling 21% in the first quarter. This time, firms are also citing AI automation and flatter management structures as reasons for downsizing, suggesting the latest cuts may not be solely about surviving a downturn but could reshape exchanges’ staffing and cost structures.

Gemini announced in February that it would cut about 200 jobs, or 25% of its workforce, with the reduction rising to 30% by mid-March. Algorand Foundation cut 25% of its workforce on March 18, followed by Crypto.com cutting another 180 jobs, or 12%, on March 19. Coinbase cut about 700 jobs on May 5 and estimated severance and restructuring charges of up to $60 million. On May 7, it reported first-quarter revenue of $1.41 billion and a net loss of $1.49 per share.