Crypto.com Cuts 12% of Workforce, Cites AI in Latest Round of Layoffs

Crypto.com, the cryptocurrency trading platform, announced Thursday a strategic workforce reduction, impacting approximately 12% of its staff. This move is directly tied to the company’s aggressive integration of artificial intelligence across its enterprise operations.

CEO Kris Marszalek articulated the imperative of this shift, stating on X, “We are joining the list of companies integrating enterprise-wide AI. Companies that do not make this pivot immediately will fail.” He further elaborated that the targeted reduction in roles, designed to align with the evolving operational landscape, is a crucial step to prepare the company for sustained success.

A spokesperson for Crypto.com confirmed to CNBC that all affected employees have been notified, though specific numbers were not disclosed. This latest round of layoffs at the crypto platform underscores a broader industry trend where an increasing number of major corporations are citing AI as a catalyst for significant workforce adjustments.

The tech landscape has seen seismic shifts recently. Last month, Block, the financial technology firm formerly known as Square, announced a substantial layoff of over 4,000 employees, representing nearly half of its workforce. CEO Jack Dorsey conveyed a clear message to shareholders, highlighting that “Intelligence tools have changed what it means to build and run a company. A significantly smaller team, using the tools we’re building, can do more and do it better.” This sentiment reflects a fundamental re-evaluation of operational efficiency driven by AI adoption.

This trend extends to other tech giants. Earlier this week, reports indicated that Meta is contemplating sweeping layoffs that could affect up to 20% of its workforce. This potential restructuring is reportedly aimed at offsetting substantial investments in AI infrastructure and optimizing for greater efficiency through AI-assisted labor, according to media outlets.

In Sydney, software company Atlassian made a similar announcement last week, cutting 10% of its workforce, equating to approximately 1,600 jobs. CEO Mike Cannon-Brookes explained in a blog post that these measures were necessary to “self-fund further investment in AI and enterprise sales, while strengthening our financial profile.” The company has experienced significant valuation declines this year, a situation exacerbated by the pressure AI advancements are placing on software stocks.

The impact of AI is particularly acute for entry-level positions, with the proliferation of AI tools contributing to a slowdown in hiring for recent graduates. Last week, ServiceNow CEO Bill McDermott expressed concerns on “Squawk on the Street,” suggesting that unemployment among new college graduates could rise significantly in the coming years. “So much of the work is going to be done by agents,” McDermott noted, highlighting the transformative potential of AI agents in the workforce.

In a significant move that signals its commitment to the AI frontier, Marszalek acquired the domain name AI.com for $70 million in February, a record-breaking price for a domain. The platform subsequently launched a Super Bowl advertisement to promote its AI agent capabilities. This strategic acquisition and marketing push underscore Crypto.com’s ambition to be at the forefront of AI innovation.

This recent workforce adjustment at Crypto.com follows a period of significant restructuring in 2023, when the company laid off 20% of its global workforce. At that time, the company cited the collapse of FTX and a renewed focus on prudent financial management as the primary drivers for the reductions.