A fresh wave of layoffs has hit the cryptocurrency industry over recent weeks, highlighting once again the mounting pressure on companies to downsize. Leading firms including Algorand Foundation, Gemini, Block, Crypto.com, OP Labs, PIP Labs, and Messari have all announced reductions in staff numbers. Companies have cited sluggish token prices, macroeconomic volatility, and increased adoption of artificial intelligence (AI) in business operations as key reasons for the cuts. Data released so far shows that, even among firms that published figures, hundreds of positions disappeared within a matter of weeks.
Layoffs Span Multiple Major Firms Simultaneously
On Wednesday, Algorand Foundation cut one quarter of its workforce. With fewer than 200 employees in total, the foundation attributed the layoffs to “uncertain global macro conditions” and the overall weakness in crypto markets. In February, Gemini Space Station revealed plans to eliminate around 200 roles, a number that climbed to 30% of staff by mid-March. Crypto.com followed suit on Thursday, announcing it would reduce its headcount by 12%, equivalent to roughly 180 jobs.
Startups and Data Platforms Also Hit by Reductions
OP Labs, the developer of the Optimism layer-2 network, parted ways with 20 employees at the start of the month. At PIP Labs, the company behind Story Protocol, five full-time staff members and three contractors—about 10% of their workforce—were let go. Crypto data provider Messari, well known for its research and analytics, initiated its third round of layoffs since 2023, as it pivots toward an AI-driven business model. Once aiming to build a team of 1,000 analysts, Messari’s workforce has now contracted to around 140.
The public justifications for these layoffs are not identical across companies. For Algorand, adverse macroeconomic trends and falling token prices were cited most directly. Elsewhere, some firms emphasized that integrating AI allowed them to achieve greater operational efficiency with fewer employees. Still, exactly which roles are being affected by this digital shift is not always clear in every instance.
Gemini’s leadership has framed AI as an indispensable tool across its operations.
“AI at Gemini is no longer a limited technology—we’d be as outdated to ignore it as we would be to show up to work with a typewriter instead of a laptop,” the company stated.
A similar message was echoed by Crypto.com. The company’s spokesperson confirmed that AI integration is now standard throughout their operations, with the resulting rise in efficiency meaning fewer employees are needed. CEO Kris Marszalek also emphasized that companies not leveraging AI in their processes risk being left behind.
“We’re adopting AI company-wide; higher efficiency means we need fewer staff,” said Marszalek.
However, not all observers agree that AI is the primary driver of these layoffs. Dan Escow, founder of the crypto recruitment firm Up Top, views the industry contraction as more structural. He noted that once-booming fields such as restaking, DePIN, and layer-2 solutions are now shrinking rapidly, pushing companies to cut costs until the next growth opportunity emerges.
“I don’t see much evidence that these layoffs are mainly due to AI replacing jobs. Areas like restaking, DePIN, and L2 have contracted sharply, and firms are reducing costs as they map out their next moves,” Escow said.
Industry employment data supports this picture. Leading crypto job boards saw daily new listings in January fall to an average of 6.5, marking an 80% plunge relative to the same month last year. Meanwhile, Algorand’s ALGO token is trading 98% below its 2019 peak, holding near $0.09, and Bitcoin has dropped 20% during this quarter. The numbers reveal that just among the companies named in this report, roughly 450 jobs have been eliminated over the past few weeks.
