BitGo Cuts Staff Amid Shift Towards AI-Driven Operations

BitGo, a leading crypto custody and infrastructure firm, has cut nearly 15% of its workforce in a bid to adapt to the evolving financial services landscape. According to CEO Mike Belshe, the company will redirect resources towards stablecoins, trading, security, and AI-powered infrastructure. This move is part of a broader trend within the industry, with several companies cutting staff in recent months.

The layoffs come as BitGo faces declining stock prices, with shares falling nearly 5% to close at $4.80 after the announcement. This represents a 73% decline from its initial public offering price in January. Despite the job cuts, Belshe noted that BitGo will continue hiring in strategic areas.

The company's decision has sparked debate within the industry, with some arguing that AI-driven operations are becoming increasingly prevalent. However, others have questioned whether this justification conceals simple adjustments to a declining market. The trend of layoffs is expected to continue, with over 120,000 jobs disappearing since January across the global tech sector.