Cryptocurrency Platform Crypto.com Cuts 12% of Workforce, Becoming Latest Company to Lay Off Staff Citing AI

Key Points

• Cryptocurrency exchange Crypto.com advances AI applications and announces a 12% layoff.
• CEO Kris Marszalek stated the layoffs target “positions incompatible with the new development pattern.”
• More companies are conducting large-scale layoffs citing AI transformation, prompting executives to reconsider the types of roles needed.

On Thursday, cryptocurrency exchange Crypto.com announced that during its comprehensive integration of AI technology, it will cut 12% of its staff.

“We are joining the ranks of companies deploying enterprise-level AI. Companies that fail to make this transition immediately will eventually be eliminated,” CEO Kris Marszalek wrote on X.

He added, “As part of this initiative, we have targeted approximately 12% of roles that cannot adapt to our new development pattern.” He stated that the new organizational structure will prepare the company for “continued success.”

A Crypto.com spokesperson confirmed to CNBC that all affected employees have been notified but declined to disclose the specific number of layoffs.

This round of layoffs at the crypto platform comes as more companies are conducting large-scale staff reductions citing AI applications.

Last month, payments technology company Block laid off over 4,000 employees, nearly half of its workforce. CEO Jack Dorsey wrote in a shareholder letter, “The core idea is simple: intelligent tools have reshaped the essence of creating and operating a company.” “A significantly streamlined team, equipped with the tools we are building, can accomplish more and higher-quality work.”

Earlier this week, reports indicated that Meta plans to lay off up to 20% of its total staff. This move aims to offset high expenses on AI infrastructure and “prepare for higher efficiency brought by AI-assisted work.”

Australian-based software company Atlassian announced a 10% layoff last week, about 1,600 positions. CEO Mike Cannon-Brookes stated in a blog post that the layoffs are to “self-fund further investments in AI and enterprise sales, while optimizing financial health.” Due to the impact of AI tools on software stock prices, the company’s market value has halved this year.

As AI proliferation slows hiring, entry-level employees are facing employment difficulties. Last week, ServiceNow CEO Bill McDermott said on CNBC’s Street Signs that in the coming years, the unemployment rate for recent college graduates is “likely to easily surpass 35%.” McDermott stated, “Many jobs will be performed by intelligent agents.”

According to the Financial Times, in February this year, Marszalek bought the domain AI.com for $70 million, setting a record for the highest publicly disclosed domain transaction. The site also aired a 30-second Super Bowl ad this year to promote its AI intelligent agent product.

Crypto.com is headquartered in Singapore with offices in the US and other locations. In 2023, influenced by the bankruptcy of crypto firm FTX, the company announced a 20% global layoff citing “focus on prudent financial management.”