Crypto custody and infrastructure firm BitGo is undergoing a significant workforce reduction, with CEO Mike Belshe announcing a nearly 15% cut to its staff. In a recent update shared via social media and filed with the U.S. Securities and Exchange Commission, Belshe characterized the layoffs as a “one-time” decision to realign the company’s focus.
Belshe emphasized the need for BitGo to adapt to the evolving financial services landscape, stressing that the company must prioritize areas such as security, trading, stablecoins, settlement, and “AI-powered infrastructure” to enhance its offerings for clients. While the exact number of affected positions was not disclosed, BitGo’s 2025 annual report indicated a workforce of approximately 603 full-time employees, suggesting that around 90 jobs may be impacted.
In his announcement, Belshe reassured employees that this decision was a singular occurrence and indicated that BitGo does not foresee additional layoffs in the immediate future. He pointed out that the company still has numerous open positions, reflecting a commitment to growth despite the current cuts.
This move is part of a broader trend affecting the cryptocurrency sector in 2026, where numerous firms have been reducing their headcount in response to a challenging market environment and an increased focus on artificial intelligence. BitGo follows the footsteps of major industry players like Coinbase, which cut 14% of its staff, and Block, which eliminated around 4,000 positions or 40% of its workforce.
Following BitGo’s public offering in January, where shares were priced at $18 and the firm raised around $213 million, the company’s stock performance has not inspired confidence. As of Thursday, BitGo shares traded at approximately $4.80, marking a nearly 73% decline from their initial price.
Market analysts have noted a concerning trend across the tech industry, with over 120,000 job cuts recorded since the beginning of the year. Major companies, including Microsoft and PayPal, have cited a shift toward automation and the adoption of AI tools as key factors driving these reductions. However, there remains contention regarding whether AI is indeed the primary motivator behind these layoffs, with some suggesting that it provides a convenient narrative amid an ongoing market downturn.
As BitGo navigates these changes, the focus remains on reestablishing its footing in the competitive crypto landscape while addressing the broader challenges faced by the industry.
