Crypto.com, based in S'pore, cuts 12% of workforce & cites drive to adopt AI

Singapore-headquartered digital asset exchange Crypto.com has reduced its workforce by around 12 per cent, as part of a restructuring tied to the company’s growing use of artificial intelligence (AI).

The company said on Mar. 19 that it is introducing AI across its operations while shifting resources towards priority growth areas and improving efficiency, reported Bloomberg.

AI Pivot

A spokesperson for the company did not disclose to Bloomberg the exact number of roles affected, though estimates based on the company’s previously reported headcount suggest roughly 180 employees may have been impacted.

It was not reported how many Singaporean employees were affected.

Chief executive Kris Marszalek, writing in a post on X, said the move reflects a broader shift that companies need to make quickly.

“Companies that do not make this pivot immediately will fail.”

He added that organisations that combine top-performing staff with strong AI tools would be able to reach levels of scale and precision that were previously difficult to achieve.

Third round of layoffs in four years

This is Crypto.com’s third major workforce reduction in the past five years, reported The Straits Times.

The company cut about 5 per cent of staff in 2022, as rising interest rates and weaker macroeconomic conditions weighed on the sector.

In 2023, it announced another 20 per cent reduction following the collapse of FTX, which triggered wider turmoil across the crypto industry.

Crypto.com had more than 1,500 employees globally before the latest cuts.

The company said all affected employees have been notified and are receiving support as they transition out of their roles.

Founded in 2016, Crypto.com says it has more than 100 million registered users globally and has expanded heavily in the United States through sponsorship deals and new partnerships, according to Bloomberg.

Crypto.com has also developed close links with the Trump administration, including making multi-million dollar contributions to MAGA Inc., a conservative political action committee, as well as to Donald Trump’s inauguration fund.

Part of wider AI-linked job cuts

Crypto.com joins a growing list of companies that have cited AI when announcing workforce reductions.

Reports have indicated that Meta Platforms is preparing further reductions linked to efficiency gains from AI-assisted work that that could effect up to 20 per cent of the company.

Marszalek has also separately expanded into AI-related ventures, including acquiring the AI.com domain and launching a platform focused on consumer AI agents last month.

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