A wave of recent layoffs has eliminated hundreds of jobs within the cryptocurrency industry. Last week saw Crypto.com announce it was cutting 180 jobs, or 12% of its staff, while the Algorand Foundation said it would let go of 25% of its workforce — under 200 employees — due to what it called “the uncertain global macro environment” and a wider crypto downturn. And in February, Gemini said it would cut around a quarter of its staff though that number had expanded to 30% by the middle of March, the report added.
“AI is now too powerful not to use at Gemini,” that company said in its letter to shareholders. “Not using AI at Gemini will soon be the equivalent of showing up to work with a typewriter instead of a laptop.”
Coindesk says industry observers say the trend is being driven by consolidation, as crypto sectors like restaking have shrunk, while mergers and acquisitions are leading to “acquihires,” or employees acquired by purchasing another company, are displacing legacy workers. “I see no real indication that these layoffs have anything to do with AI workforce replacement at scale,” Dan Escow, founder of crypto recruitment agency Up Top, told Coindesk. “Entire categories like restaking, DePIN and L2s that were once robust with talent are basically nonexistent. Companies are forced into cost-cutting mode to buy time to figure out how to execute on whatever comes next.”
A wave of layoffs has hit the cryptocurrency industry, with Crypto.com cutting 180 jobs, or 12% of its staff, and the Algorand Foundation reducing its workforce by about 25% (under 200 employees) due to the uncertain global macro environment and a broader crypto downturn. In February, Gemini said it would trim roughly a quarter of its staff, a figure that had risen to 30% by mid-March.
“AI is now too powerful not to use at Gemini,” the company said in its letter to shareholders, adding that “Not using AI at Gemini will soon be the equivalent of showing up to work with a typewriter instead of a laptop.” Coindesk notes industry observers attribute the trend to consolidation, with restaking shrinking and acquisitions—often called acquihires—displacing legacy workers as mergers reshape the sector. “I see no real indication that these layoffs have anything to do with AI workforce replacement at scale,” said Dan Escow, founder of crypto recruitment agency Up Top, underscoring that entire categories like restaking, DePIN, and L2s are essentially nonexistent as firms pursue cost-cutting measures to weather the downturn.
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