Crypto firms are slashing jobs — and they’re mostly citing the same reason

Crypto firms are cutting hundreds of employees from their workforces despite a hiring spree for crypto roles among some of Wall Street’s biggest firms.

Some of the latest victims? Employees at Crypto.com, a Singapore-based crypto exchange founded in 2016, who announced on Thursday that it had cut 12% of its workforce.

And like many of the firms reducing their workforce, Crypto.com broadly blames their actions on one thing: artificial intelligence.

“We are joining the list of companies integrating enterprise-wide AI,” Kris Marszalek, Crypto.com’s CEO and co-founder, said.

“Companies that do not make this pivot immediately will fail. Companies that move immediately and pair the best AI tools with top-performers will achieve a level of scale and precision that was previously impossible.”

The exchange joins more than half a dozen crypto firms that have announced similar layoffs since the start of the year, which includes fellow exchange Gemini, data platform Messari, and Optimism Labs, the firm behind the Ethereum layer 2 blockchain.

For years, analysts have warned that as AI develops it will increasingly replace white collar employees, particularly in administration, customer service, and entry-level roles.

AI window dressing?

It’s not just crypto firms cutting jobs and blaming it on AI.

Amazon, Meta, Atlassian, and dozens more firms have also laid off thousands of employees in recent years as they pivot to integrating AI into their workflows.

Yet it’s unclear if these firms are simply window dressing pre-planned cutbacks by framing them as efficiency gains brought about by AI adoption.

In January, research conducted by Oxford Economics, an independent global advisory firm, cast doubt on the idea that AI is to blame for increasing unemployment.

According to the firm’s analysis, “firms don’t appear to be replacing workers with AI on a significant scale,” suggesting companies may be using the technology as a cover for routine headcount reductions.

What’s more, some companies are reportedly rehiring staff they initially thought they could replace with AI, indicating the technology is not yet fully mature for mass replacement.

Earlier this week, Block, the fintech firm behind Cash App, quietly rehired some of the 4,000 employees it laid off last month as part of its AI-driven restructuring.

Still, many of the crypto firms cutting jobs are keen to advertise them as a necessary consequence of increasing their efficiency through AI.

“We’re doubling down on Messari as an AI-first company serving institutions through research and AI products,” Diran Li, the firm’s new CEO, said on Monday after previous CEO Eric Turner stepped down amid widespread job cuts at the firm.

It’s a similar story over at Gemini, the crypto exchange started by Cameron and Tyler Winklevoss.

“Not using AI at Gemini will soon be the equivalent of showing up to work with a typewriter instead of a laptop,” the exchange said in a Thursday letter to shareholders. “As a result, we have reduced the size of our workforce by roughly 30% since the start of 2026.”

Not just AI

Not everyone is blaming AI for their job cuts, however.

Optimism Labs, one of the most active organisations scaling the Ethereum blockchain, cut some 20 jobs on March 12.

“This is about doing fewer things well, making decisions faster, and reducing coordination overhead,” Jing Wang, the firm’s CEO, said.

The cuts come after Coinbase announced plans to stop sharing revenue from its layer 2 network Base with Optimism in February.

More recently, the Algorand Foundation, a nonprofit that helps develop the Algorand blockchain, announced that it had cut its workforce by 25%.

“This decision was not taken lightly and is in response to the uncertain global macro environment as well as the broader downturn in crypto markets,” the foundation said on Wednesday.

Since the start of the month, the US and Israel’s war with Iran has caused oil and gas prices to soar, sending shockwaves throughout the global economy.

Analysts warn that a spike in inflation driven by higher oil prices could spell further trouble for stocks, gold and crypto.

Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.