Crypto.com layoffs: Company to cut 12% workforce as AI push reshapes operations — all you need to know
Cryptocurrency exchange Crypto.com announced Thursday that it will cut 12% of its workforce as part of efforts to integrate artificial intelligence into its operations, a trend seen across corporate sectors.
“We join the list of companies integrating AI across the enterprise. Companies that don’t make this pivot now will fail. Companies that move slowly will be left behind,” CEO Kris Marszalek said on X (formerly Twitter).
“As part of this step, we also made a targeted workforce reduction of ~12% in roles that do not adapt to our new world,” he said, adding that the new foundation sets the company up for “continued success.”
The chief executive also confirmed that all affected team members have been informed of the decision and have received resources to support their transition.
The crypto trading platform, headquartered in Singapore with offices in the US and other regions, laid off 20% of its global workforce in early 2023, citing the collapse of crypto company FTX and a “focus on prudent financial management.”
Speaking about the layoffs, Marszalek said that companies that move quickly and combine the best AI tools with the best performers will achieve a level of scale and precision that was previously impossible. “That’s where we (Crypto.com) need to go,” he said.
Artificial intelligence-related layoffs this year
Layoffs continue to impact the corporate sector as companies adapt to a rapidly changing industry shaped by artificial intelligence. More than 39,000 employees have been laid off by 66 tech companies so far this year, according to independent layoff tracker Layoffs.fyi.
Last month, American technology company Block laid off more than 4,000 employees, almost half of its workforce.
Speaking about the decision, CEO Jack Dorsey said that a much smaller team using the tools the company developed “could do more and do better.”
“The basic thesis is simple. Intelligence tools have changed what it means to start and run a company,” Dorsey wrote in a statement to shareholders.
Some of the other biggest pink slips came from Oracle, Amazon, and Meta. collectively affected thousands of employees in different segments and regions. These layoffs, often linked to artificial intelligence, are being implemented by companies looking for ways to cut costs.
Earlier this week, Reuters reported that Meta was planning to reduce some of its positions, which could affect up to 20% of the company.
Meanwhile, Bloomberg reported on Thursday that HSBC Holdings Plc is considering a deep wave of layoffs that could result in 20,000 layoffs over the next few years as CEO Georges Elhedery believes in an AI-led overhaul.
Last year, the tech industry experienced significant workforce reductions, with more than 120,000 tech professionals losing their jobs at 271 companies, according to Layoffs.fyi; This marks a period of significant restructuring driven by the rapid adoption of artificial intelligence.
