In a continuation of the wave of layoffs within the tech sector, Crypto.com has announced a 12% reduction in its workforce, a move attributed to the integration of artificial intelligence (AI) into the company’s operations. CEO Kris Marszalek emphasized that the layoffs affected roles deemed obsolete in the context of a rapidly evolving technological landscape.
Marszalek conveyed his belief that the adoption of AI is not just a strategic choice but a matter of survival for companies in today’s market. He stated on X, “Companies that do not make this pivot immediately will fail. Companies that move slowly will be left behind.” He underscored that those who can optimally merge AI tools with high-performing employees could achieve unprecedented levels of efficiency and scale.
In a confirmation of these layoffs, a spokesperson from Crypto.com noted that all affected employees had been informed and that the company aims to allocate resources effectively toward key growth areas and operational efficiencies. This decision follows a previous layoff in 2023, where the company cut 20% of its workforce amidst declining trust in the crypto industry post-FTX collapse. Job cuts were also executed in 2022 during a downturn in the market.
Marszalek’s comments reflect a broader trend among tech executives linking layoffs directly to the necessity of adopting AI. For instance, Jack Dorsey, CEO of Block, stated that a restructured, smaller team empowered with AI can enhance productivity, a sentiment echoed by employees who found themselves laid off despite their frequent use of AI tools.
Additionally, Atlassian made headlines by cutting 1,600 jobs, about 10% of its global workforce, with CEO Mike Cannon-Brookes indicating the necessity of repositioning for the “AI era.” Nonetheless, discussions around the validity of AI as a scapegoat for job losses have emerged, as OpenAI CEO Sam Altman has criticized companies for engaging in “AI washing”—using the technology as an excuse for layoffs that might have been unavoidable for other reasons.
While Marszalek reduces labor costs, he remains committed to investing in AI initiatives, recently acquiring the domain AI.com for $70 million, illustrating his focus on new business opportunities tied to artificial intelligence.
