Successive layoffs in the cryptocurrency industry in recent weeks have brought companies’ downsizing decisions back to the agenda. While the number of staff was reduced at Algorand Foundation, Gemini, Block, Crypto.com, OP Labs, PIP Labs and Messari, the reasons were weak token prices, macroeconomic uncertainty and the greater inclusion of artificial intelligence in workflows. The released data showed that even in companies that only shared numbers, hundreds of positions were closed within a few weeks.
Cuts Spread to Different Companies in the Same Period
Algorand Foundation parted ways with 25 percent of its employees on Wednesday. While it was stated that the total number of employees of the foundation was below 200, it was stated that the cut was made due to the “uncertain global macro environment” and general weakness in the crypto market. In February, Gemini Space Station announced it would close approximately 200 positions; This rate increased to 30 percent of the total staff in mid-March. Crypto.com announced on Thursday that it would cut 12 percent of its workforce, or approximately 180 roles.
In addition, OP Labs, which developed the Optimism layer-2 network, said goodbye to 20 employees at the beginning of this month. At PIP Labs, behind Story Protocol, five full-time employees and three contract staff were laid off; This figure corresponds to approximately 10 percent of the company’s staff. Crypto data company Messari also shrank for the third time since 2023. The company has recently been trying to transform itself into an artificial intelligence-focused structure. It seems that Messari, known in the field of research and data analytics, has decreased from a target of 1,000 analysts to approximately 140 employees today.
The official reasons given by the companies are not the same. On the Algorand front, macro conditions and low token prices were highlighted more clearly. In contrast, some companies argued that they were accelerating artificial intelligence integration to run more efficient operations with fewer employees. However, it is not clear in every example which positions are directly affected by this transformation.
Debate Continues While Emphasis on Artificial Intelligence Comes to the Fore
Gemini management argued that artificial intelligence has now become mandatory in business processes.
“AI is no longer a technology so limited that it can’t be used at Gemini. Not leveraging it internally would be like coming to work with a typewriter instead of a laptop.”
A similar emphasis was made by Crypto.com. The company spokesperson stated that artificial intelligence integration has been implemented throughout the organization and fewer employees are needed due to increased efficiency. Crypto.com CEO Kris Marszalek also argued that companies that do not integrate artificial intelligence into their processes may be left behind.
“We are participating in the integration of artificial intelligence throughout the company; increased productivity results in the need for fewer employees.”
However, not all observers are of the opinion that artificial intelligence is the main reason for layoffs. Dan Escow, founder of crypto recruitment company Up Top, said that the contraction in the sector points to a more structural picture. According to Escow, there was a sharp contraction in areas such as restaking, DePIN and layer-2, which once created intense employment; Companies also turned to cost cutting until they found the next growth area.
“I don’t see any strong indication that these layoffs are due to large-scale AI replacing the workforce. Areas like Restaking, DePIN and L2 have shrunk significantly; companies are cutting costs to buy time until it becomes clear what to do next.”
The general employment outlook also supports this picture. The number of new postings per day on major crypto business platforms in January remained at approximately 6.5; This represents a decrease of approximately 80 percent compared to the same period last year. Algorand’s ALGO token is down nearly 98 percent from its 2019 peak and was around $0.09 in recent trading. Bitcoin also fell by 20 percent this quarter. The announced figures revealed that approximately 450 positions have been eliminated in recent weeks, even in the companies mentioned and sharing numbers only in this news.
