Startups may be the next wave of AI-driven layoffs.
0G Labs, a San Francisco startup building a blockchain for AI agents, says it will cut its workforce by a quarter because its agents are so good at human jobs.
0G Labs announced the decision last week in an email from CEO Michael Heinrich, which was seen by Business Insider.
Heinrich said the company is becoming a “leaner, faster, AI-native company” and is now focused on scaling up AI rather than employee numbers.
“Every day we talk about a world where AI agents handle jobs that humans should not do,” his email said. “It’s time for us to do so ourselves.”
Heinrich’s email added that staff should leverage AI every day to achieve “20x” more production than before, but that human judgment remains “essential.”
0G Labs said in a statement that while the decision to reduce its workforce was “never easy,” the efficiencies it has gained from its AI agents are real.
“As a company building AI infrastructure, we believe in running on the same technology we provide to other companies,” the spokesperson said.
0G Labs announced that it had raised approximately $350 million in funding and was valued at $2 billion as of last year. This was highlighted in a Business Insider article at the time about an AI unicorn with a small team, which said the company had about 40 people on staff.
The startup’s crypto token, 0G$, has fallen more than 80% in price since its launch last year, according to CoinMarketCap. 0G Labs did not comment on whether this influenced the decision to reduce staff.
AI-driven layoffs are hitting the tech industry hard after technological breakthroughs over the holidays, which some are calling a “Claude Christmas” after Anthropic’s chatbot.
Fintech company Block cut nearly half of its workforce in February due to AI, while Coinbase similarly announced on Tuesday that it would lay off 14% of its workforce due to AI.
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