- The BitGo AI strategy resulted in cutting of almost 15 percent of their employees despite continued hiring in certain business units.
- The company experienced significant growth in their revenues but the company incurred higher losses per quarter prior to the announcement of the layoffs.
- BitGo claims that these are one-time layoffs and there will be no more layoffs in the future.
BitGo AI strategy became the center of the company’s latest restructuring after the digital asset infrastructure firm announced a nearly 15% workforce reduction while outlining plans to redirect resources toward security, trading, stablecoins, settlement, and artificial intelligence-powered infrastructure.
The move was disclosed by BitGo co-founder and Chief Executive Officer Mike Belshe, who said the restructuring reflects changes in how financial services are being built.
The announcement also comes as the company reported strong revenue growth alongside wider quarterly losses and joins a broader trend of workforce reductions across the cryptocurrency sector during 2026.
Belshe announced the decision in a post on X, stating that the company had made a difficult choice to reduce its workforce by nearly 15%.
He said the digital asset industry has changed significantly, requiring BitGo to narrow its priorities and focus more on business segments the company considers central to its future operations.
Source: Wu Blockchain
According to Belshe, the workforce reduction is intended as a one-time action, and the company does not currently expect additional layoffs.
BitGo AI Strategy Shifts Resources to Core Business Areas
In explaining the restructuring, Belshe said BitGo will concentrate its employees and resources on security, trading, stablecoins, settlement, and AI-powered infrastructure. He stated that the company believes these areas represent the priorities needed as financial services continue to evolve.
The announcement did not specify the exact number of employees affected. Nevertheless, the 2025 annual report of BitGo, which was issued in March, noted that the firm had 603 full-time employees as of December 31, 2025. Given the aforementioned number of employees, a cut of almost 15% will impact around 90 employees.
While reducing its staff, BitGo still hires new employees in specific business sectors. It is evident from the information posted on the company’s careers page that there are 51 available positions within various regions.
Financial Results Demonstrate Revenue Growth and Larger Net Loss
This restructuring is based on BitGo’s recent financial results that demonstrated significant revenue growth but a larger quarterly net loss.
In the first quarter, the company generated revenues worth $3.8 billion, marking an impressive 112.6% growth compared to the same quarter in the previous year.The revenue growth came as BitGo advanced its business following its initial public offering in January.
At the same time, first-quarter net losses widened to $60.7 million compared with $25.7 million during the corresponding period last year.
The company attributed the larger loss to non-cash mark-to-market impacts on its Bitcoin treasury holdings together with higher stock-based compensation expenses related to its public listing.
Following the earnings release, Belshe said the company intended to continue investing in its core infrastructure while expanding work involving stablecoins and tokenized assets, areas that remain part of the company’s current strategic direction.
Shares Decline Following Workforce Announcement
BitGo shares moved lower after the restructuring announcement. The company’s stock, trading under the ticker BTGO, closed Thursday at $4.80 after declining about 4.7% during the trading session.
Source: Google Finance
The share price also remained well below its public market debut price of $18 recorded on Jan. 22, representing a decline of nearly 73% from that level.
The workforce announcement came shortly after investors had reviewed the company’s latest financial performance, which combined higher revenue with increased quarterly losses.
Crypto Industry Continues Workforce Reductions
BitGo’s restructuring adds to a series of workforce reductions announced by cryptocurrency companies during 2026.
According to the information provided, more than 5,000 jobs have been eliminated across the cryptocurrency industry this year.
Block Inc. recorded the largest reduction after cutting approximately 4,000 employees, representing about half of its workforce, earlier in the year.
Other companies have also announced staffing reductions. Robinhood reduced its workforce by 10% on June 16. During May, Kraken cut 150 positions, while blockchain data company Dune reduced approximately one-quarter of its employees. Coinbase also announced a reduction of about 700 employees, equal to roughly 14% of its workforce.
Earlier in the year, Gemini eliminated approximately 200 positions, while Crypto.com reduced its workforce by about 180 employees. Both companies cited the increasing use of artificial intelligence when announcing their staffing changes.
Several firms have also stated that organizational restructuring would allow them to place greater emphasis on AI-related operations alongside their existing business activities.
Moreover, the workforce reductions extend beyond cryptocurrency companies. Over 121,500 jobs have been cut down within over 200 technology firms in the USA in 2026, as per the report from Layoffs.fyi.
