Crypto.com cuts 12% of workforce as it launches AI business

Crypto.com, a Singapore-based digital asset exchange, is cutting about 12% of its workforce as part of the company’s shift to artificial intelligence.

CEO Kris Marszalek he said in a statement on X Thursday that the cuts were necessary to survive in an increasingly competitive industry. Marszalek warned that companies that are slow to adopt AI tools will be overtaken by their competitors.

“Companies that move immediately and combine the best AI tools with the best performers will achieve the scale and accuracy that was previously impossible. This is where we need to go,” he said.

The Singaporean employee said he found out the job was cut after he failed to log into Slack in the morning, The Straits Times reported.

One official said the agency has grown “layered and unwieldy,” reducing operational efficiency, and that it needs to adopt new tools and technologies to better serve it.

The third line of resignations in recent years

The layoffs are the third round of layoffs at the exchange, following cuts in 2022 that eliminated about 260 workers, about 5% of the workforce, and another round in 2023 that reduced the workforce by about 20%.

Affected employees have been notified and are receiving transition assistance, according to the company, although Mr. Marszalek provided little information on what departments or positions were targeted.

The reduction of Crypto.com’s services comes amid the ongoing restructuring of the crypto market, where companies have been reducing their services due to the market downturn.

Yesterday, the Algorand Foundation announced a 25% reduction in his works.

Other announcements in the crypto industry this year include Block (40% of his teamor more than 4,000 employees), OP Labs (20 employees), Gemini (25% of his team), OKX, and Messari.