Cryptocurrency trading platform Crypto. com announced on Thursday that it is laying off 12% of its staff as part of the company’s integration of artificial intelligence. “We are joining the list of companies implementing enterprise-wide AI. Companies that do not make this shift immediately will fail, ” CEO Kris Marszalek posted on X. He added, “As part of this step, we have also made a targeted ~12% reduction in workforce in roles that do not fit within our new vision, ” explaining that the restructuring prepares the company for “continued success. ” A Crypto. com spokesperson told CNBC that all affected employees have been informed but declined to disclose the exact number of layoffs. These cuts at Crypto. com come amid a broader trend where many companies cite AI as a reason for large-scale job reductions. Last month, Block laid off over 4, 000 employees, almost half its workforce. “The core thesis is simple. Intelligence tools have changed what it means to build and run a company, ” CEO Jack Dorsey explained in a letter to shareholders. “A significantly smaller team, using the tools we're building, can do more and do it better, ” Dorsey said. Earlier this week, Reuters reported that Meta plans layoffs potentially affecting up to 20% of its staff. This move aims to offset the company’s high AI infrastructure expenses and “prepare for greater efficiency brought about by AI-assisted workers, ” according to Reuters. Sydney-based software firm Atlassian last week announced it is cutting 10% of its workforce, roughly 1, 600 jobs. CEO Mike Cannon-Brookes stated in a blog post that the layoffs are intended to “self-fund further investment in AI and enterprise sales, while bolstering our financial profile. ” The company has lost more than half its value this year as AI adoption pressures software stocks. Entry-level workers are also experiencing job challenges due to AI’s impact on hiring. Last week, ServiceNow CEO Bill McDermott told “Squawk on the Street” that unemployment among recent college graduates “could easily reach the mid-30s percent in the next couple of years. ” “So much of the work is going to be done by agents, ” McDermott added. In February, Marszalek purchased the domain AI. com for $70 million, the highest price ever publicly disclosed for a domain name, according to the Financial Times.

The site ran a 30-second Super Bowl commercial this year as part of its AI agent launch. In 2023, Crypto. com, headquartered in Singapore with offices in the U. S. and elsewhere, laid off 20% of its global workforce, citing the collapse of crypto firm FTX and a “focus on prudent financial management. ”