Crypto.com lays off 12% of workforce in latest company to cite AI in job cuts

In a significant move, cryptocurrency exchange Crypto.com has announced a reduction of 12% in its workforce as part of its strategy to incorporate artificial intelligence across its operations. CEO Kris Marszalek shared the news on social media platform X, emphasizing the necessity for companies to swiftly adapt to AI or risk failure. Marszalek stated, "We are joining the list of companies integrating enterprise-wide AI. Companies that do not make this pivot immediately will fail." He explained that the layoffs focus on roles that are less aligned with the future direction of the company, aiming to position Crypto.com for ongoing success amidst a rapidly evolving industry landscape. A spokesperson from Crypto.com confirmed that all affected employees have been informed, although they did not disclose the exact number of job losses. This decision follows a trend among several firms leveraging AI as a rationale for significant workforce reductions. For instance, last month, Block announced layoffs impacting over 4,000 employees, nearly half of its staff, as highlighted by CEO Jack Dorsey. In a note to shareholders, Dorsey remarked, "The core thesis is simple. 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." Additionally, reports surfaced this week that Meta is considering layoffs that could affect up to 20% of its workforce, intended to address high expenditures on AI infrastructure and improve efficiency through AI-supported roles. Earlier this year, Marszalek made headlines by acquiring the domain name AI.com for a record $70 million, showcasing his commitment to the AI sector. Crypto.com, based in Singapore with a presence in the U.S. and beyond, previously laid off 20% of its global workforce in 2023, a decision influenced by the fallout from the collapse of crypto firm FTX and the company’s emphasis on sound financial management.