The cryptocurrency trading platform Crypto.com announced on Thursday (March 19th) that it will be cutting 12% of its workforce as it integrates artificial intelligence (AI) into its operations.
CEO Kris Marszalek stated on social media, “We are joining the ranks of companies integrating AI across the entire company. Companies that do not undergo this transformation immediately will fail.”
“As part of this initiative, we have also made approximately 12% of positions redundant that cannot adapt to the new environment,” he added in the post, noting that the new structure will prepare the company for “sustained success.”
A spokesperson for Crypto.com informed CNBC that all affected employees have been notified of the layoffs, but declined to provide the exact number.
As more companies cite the introduction of AI technology as a reason for large-scale staff reductions, the timing of the layoffs at this cryptocurrency trading platform is notable.
Last month, California-based payment service giant Block (formerly known as Square) laid off over 4,000 employees, roughly 40% of its total workforce.
Co-founder and Chairman of Block, Jack Dorsey, emphasized that despite the robust business of the company, in the age of artificial intelligence, enterprises must operate through a flatter, more streamlined structure to survive.
Dorsey stated in a shareholder letter, “The core argument is straightforward. Intelligent tools have changed the way companies are built and operated.”
He explained, “A significantly smaller team, using the tools we are building, can accomplish more, and do so better.”
Earlier this week, Reuters reported that Meta, the parent company of Facebook, is also planning layoffs with 20% of its workforce potentially affected, a move tied to the adoption of AI technology.
Furthermore, Sydney-based software company Atlassian announced last week that it will be cutting 10% of its workforce, approximately 1,600 employees, with one reason being the company’s further investment in artificial intelligence.
Not only in the tech industry, but as the use of artificial intelligence expands, many companies are slowing down their hiring processes, leading to employment challenges for entry-level workers.
(This article was referenced from reports by CNBC)