Bolt Financial Trims Workforce By 30% Citing AI
Bolt Financial, a fintech company that offers a one-click checkout solution for e-commerce merchants, has recently laid off about 30% of its staff. The layoffs, which affected less than 40 people, are part of the company’s ongoing strategy to operate as a leaner organization with a significant focus on Artificial Intelligence (AI).
AI as a Driving Force
Bolt’s Founder and CEO, Ryan Breslow, confirmed that the decision to reduce the workforce was primarily driven by AI. In an internal message to employees, Breslow emphasized that the needs and demands of developing products and operating in the current business environment are vastly different from previous years. To stay competitive, Bolt needs to adapt by becoming leaner and more AI-focused than ever. This approach mirrors that of Block, which earlier this year also laid off 40% of its staff, citing AI as a significant factor in the decision.
Insight Into Bolt’s Layoffs
Bolt’s recent layoffs are not an isolated incident. The company has been consistently reducing its workforce over the past few years. In May 2022, Bolt laid off approximately 30% of its employees. The company followed this with a 10% workforce reduction in January 2023 and another 30% in December 2023. However, the company has always maintained that these decisions are made from a position of strength.
Impact of AI on Financial Services
According to American Banker’s 2026 AI Talent Shift Survey, AI-driven layoffs do occur in the financial services sector, but they do not account for a significant share of the overall impact of AI. Only 3% of survey respondents, which included banks, credit unions, neobanks, and payment processors, reported that workforce reductions were part of AI’s overall impact at their organizations.
A Brief Overview of Bolt’s Journey
Bolt, founded to provide payments software for e-commerce merchants, launched an all-in-one financial services app in April last year. The app combines crypto and everyday payments into a centralized platform. In January 2022, Bolt raised $355 million from investors such as BlackRock and Schonfeld in a Series E funding round, bringing the company’s total funding to almost $1 billion.
In connection with Breslow’s return as CEO in 2024, the company attempted to raise another $450 million, but the funding round stalled due to legal challenges. Bolt declined to comment on whether the company is currently raising any funding.
Are AI-Driven Layoffs a Trend?
With Bolt and Block citing AI as a significant factor in their recent workforce reductions, some experts predict a trend in AI-driven layoffs. However, others, such as Tony DeSanctis, Senior Director at Cornerstone Advisors, believe that such reductions are more about a rightsizing of staff than a massive benefit derived from AI. DeSanctis posits that the layoffs at Bolt might be more about the challenges in the crypto market than about AI efficiencies.
As we continue to observe the impact of AI on the fintech sector, it remains to be seen if AI-driven layoffs will become a norm or if they are merely incidental to broader organizational and market dynamics.
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