Cryptocurrency exchange Crypto.com announced on Thursday that it is trimming 12% of its workforce as part of its efforts to integrate artificial intelligence into its operations, a trend seen across corporate sectors.
“We are joining the list of companies integrating enterprise-wide AI. Companies that do not make this pivot immediately will fail. Companies that move slowly will be left behind,” CEO Kris Marszalek posted on X (formerly Twitter).
“As part of this step, we have also made a targeted ~12% workforce reduction of roles that do not adapt in our new world,” he said, adding the new foundation prepares the company for “continued success”.
The chief executive also confirmed that all affected team members have been notified of the decision and are receiving resources to support their transition.
Earlier in 2023, the crypto trading platform, headquartered in Singapore and with offices in the United States and other locations, laid off 20% of its global workforce, citing the collapse of crypto firm FTX and a “focus on prudent financial management.
Speaking on job cuts, Marszalek said that companies that move quickly and combine the best AI tools with top performers will achieve a level of scale and precision that was previously impossible, adding that “this is where we (Crypto.com) must go”.
AI-driven layoffs this year
Job cuts have continued to sweep through the corporate sector as companies adjust to a rapidly changing industry shaped by artificial intelligence. So far this year, 39,000+ employees have been laid off by 66 tech companies, according to the independent layoffs tracker Layoffs.fyi.
Last month, American tech company Block laid off more than 4,000 employees, which accounted for almost half of its workforce.
Speaking about the decision, CEO Jack Dorsey said that a significantly smaller team, using the tools the company is building, can “do more and do it better”.
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” Dorsey wrote in the announcement to shareholders.
Some of the other biggest pink slips came from Oracle, Amazon, and Meta. which collectively impacted thousands of employees across different segments and regions. These layoffs, often linked to AI, are implemented by companies as they seek ways to cut costs.
Just earlier this week, Reuters reported that Meta is planning to trim some positions, a move that could affect up to 20% of the company.
Meanwhile, Bloomberg reported on Thursday that HSBC Holdings Plc is considering a wave of deep job cuts that could result in 20,000 layoffs over the next few years, as CEO Georges Elhedery bets on an AI-led overhaul.
Last year, the technology sector experienced substantial workforce reductions, with over 120,000 tech professionals losing their jobs across 271 companies, marking a significant restructuring period driven by rapid AI adoption, according to Layoffs.fyi.
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