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Cryptocurrency trading platform Crypto.com announced Thursday that it will lay off 12% of its staff as it integrates artificial intelligence.
“We join the growing list of companies integrating enterprise-wide AI. Companies that don’t make this pivot soon will fail,” CEO Chris Marszalek wrote in a post on X.
“As part of this step, we have reduced our workforce by up to 12% with the goal of reducing headcount in roles that cannot adapt to the new world,” he added, noting that the new structure will set the company up for “continued success.”
A Crypto.com spokesperson told CNBC that all affected team members have been notified, but declined to say exactly how many employees were laid off.
The crypto platform’s layoffs come as more companies cite AI for large-scale job cuts.
last month, block More than 4,000 employees, nearly half of the company’s workforce, were laid off.
“The core theme is simple: Intelligence tools have changed what it means to build and run companies,” CEO Jack Dorsey said in a statement to shareholders.
“The tools we’re building allow even fairly small teams to do more and do better,” Dorsey said.
Reuters reported earlier this week. Meta plans layoffs that could affect up to 20% of the company.
According to Reuters, the decision will help offset the company’s high spending on AI infrastructure and “prepare for the efficiency gains brought about by AI-assisted workers.”
Sydney based software company atlassian announced last week that it would cut 10% of its workforce, or about 1,600 jobs.
CEO Mike Cannon-Brooks wrote in a blog post that the cuts are intended to “strengthen our financial profile while self-funding further investments in AI and enterprise sales.”
The company has lost more than half its value this year as AI tools weighed on software stocks.
Entry-level workers face employment struggles as hiring slows due to the proliferation of AI.
last week, ServiceNow CEO Bill McDermott told Squawk on the Street that the unemployment rate for new university graduates “could easily reach the mid-30s in the next few years.”
“A lot of the work is going to be done by agents,” McDermott said.
According to the Financial Times, Marszalek purchased the domain name AI.com in February for $70 million. This is the highest price ever published for a domain. The site ran a 30-second Super Bowl ad earlier this year as part of its AI agent launch.
In 2023, Crypto.com, headquartered in Singapore with offices in the United States and other countries, laid off 20% of its global workforce due to the collapse of cryptocurrency company FTX and its “focus on prudent financial management.”
