- The announcement comes just days after Jack Dorsey-led Block Inc. announced it would be slashing nearly 40% of its workforce in a pivot towards AI.
- Crypto exchange Gemini also announced in February that it plans to eliminate up to 200 roles, which is roughly 25% of its workforce, in its “path towards profitability.”
- Messari, a crypto data platform, also announced layoffs alongside a leadership change earlier this month while outlining plans to reposition the firm as an “AI-first” organization.
Founder and CEO of crypto.com, Kris Marszalek, announced on Thursday morning that the company plans to slash its workforce by 12% as the company pivots towards full-scale integration of artificial intelligence.
“We are joining the list of companies integrating enterprise-wide AI,” he wrote in a post on X. “As part of this step, we have also made a targeted ~12% workforce reduction of roles that do not adapt in our new world.”
Crypto Industry Sees AI-Led Job Cuts
The announcement comes just days after Jack Dorsey-led Block Inc. (XYZ) announced that it was cutting over 4,000 jobs, which accounted for nearly 40% of its workforce, to create smaller teams that would be supported by AI.
XYZ’s stock was down over 1% in early morning trade on Wednesday amid broader weakness in the markets following a rise in oil prices amid escalating tensions in the Middle East. Retail sentiment around the company on Stocktwits remained in ‘bearish’ territory over the past day.
Crypto exchange Gemini (GEMI) also announced in February that it plans to eliminate up to 200 roles, which is roughly 25% of its workforce. Founders Tyler and Cameron Winklevoss said the cuts would help align expenses and accelerate the company’s “path to profitability.”
GEMI’s stock edged higher in pre-market trade, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day amid ‘low’ levels of chatter.
Messari, a crypto data platform, also announced layoffs alongside a leadership change earlier this month. Chief Executive Eric Turner stepped down, with Chief Technology Officer Diran Li taking over and outlining plans to reposition the firm as an “AI-first” organization.
The Algorand Foundation (ALGO) on Wednesday said it reduced its workforce by 25%, citing a challenging macroeconomic environment and ongoing weakness in crypto markets. ALGO’s price was down over 4% in the last 24 hours to around $0.08 as the broader cryptocurrency market tried to hold above $2.5 trillion. Retail sentiment around the token on Stocktwits remained in ‘bullish’ territory over the past day.
Third Round Of Cuts For Crypto.com Since 2022
For Crypto.com, the latest layoffs mark its third round of workforce reductions since 2022. The company cut about 5% of its staff that year, or roughly 260 employees, citing a macroeconomic slowdown. Following the collapse of FTX later in 2022, it reduced headcount by another 20% in 2023.
Marszalek said that companies adopting AI at scale are likely to gain a competitive edge. “Companies that take immediate action and pair the best AI tools with top performers will achieve unprecedented levels of scale and precision.” He added that affected employees have been notified and will receive support during the transition.
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