At the beginning of 2026, the cryptocurrency industry is experiencing a massive wave of layoffs, accompanied by a significant decrease in job openings. In recent weeks, major companies in the sector have laid off around 450 employees, and this number could be even higher considering hidden layoffs.
This is reported by Business • Media
Mass Layoffs and Sharp Decline in Demand for Specialists
Among the companies that have recently announced staff reductions are Algorand Foundation, Gemini, Crypto.com, OP Labs, PIP Labs, and Messari. Together, they have laid off hundreds of workers, illustrating the profound transformation of the market. According to investor Dan Eskow, in January 2026, the average number of new job openings at major crypto exchanges was only 6.5 per day — this is 80% lower than in January 2025.
The reasons for these changes are explained differently by the companies. Some players directly link the layoffs to negative market dynamics and the decline in token values. Others point to the optimization process associated with the implementation of artificial intelligence, which significantly enhances the efficiency of business processes.
“AI has completely changed the game […] making an engineer ’10x’ now ‘100x’,” said Gemini, commenting on the staff reductions.
The Role of Artificial Intelligence and Market Consolidation
Algorand Foundation cut about a quarter of its staff, citing an uncertain macroeconomic situation. Gemini initially announced the layoff of 200 people, later increasing the scale of reductions to 30% of its workforce. Crypto.com laid off 12% of its employees (approximately 180 people), OP Labs bid farewell to 20 workers, and PIP Labs reduced about 10% of its team. Messari has conducted its third round of layoffs since 2023, focusing on transitioning to the use of AI.
Company leaders increasingly emphasize that ignoring the implementation of artificial intelligence will soon be akin to using outdated tools. Crypto.com notes that the shift to AI allows for increased efficiency and reduced costs.
At the same time, some industry specialists do not consider AI to be the main reason for the mass layoffs. In their opinion, the key factor is market consolidation and the reduction of entire segments, particularly restaking, DePIN, and layer two solutions.
Analysts emphasize that companies are forced to optimize costs to adapt to the new market realities and maintain their resilience. The decline in labor market activity confirms this trend and indicates significant structural changes within the industry.
A similar situation was observed during previous crises. In particular, during the crypto winter of 2022, over 26,000 jobs were lost. However, the true scale of the layoffs only became apparent later, experts point out.
It was previously reported that Block, founded by former Twitter CEO Jack Dorsey, laid off 4,000 employees as part of a major business restructuring.