Crypto.com lays off 12% of workforce in latest company to cite AI in job cuts

Crypto.com has just joined a growing list of tech companies that justify layoffs by citing artificial intelligence implementation. 12% of employees were laid off — meaning approximately 290 people from a payroll of over 2,400 employees. CEO Kris Marszalek justified the decision with words about "roles that don't adapt to our new world," while the company integrates AI across the entire organization. This is no longer an exception — it's the new industry standard, and its consequences for the job market in the tech sector are beginning to be seriously concerning.

Marszalek's statement sounds familiar because we've heard it many times before. Since OpenAI released ChatGPT and then GPT-4, every major tech corporation has tried to reposition itself as an "AI-first company." In practice, however, this means something simpler: layoffs. Meta, Amazon, Google, Microsoft — they all conducted mass layoffs, and almost every CEO cited AI as the main reason. Crypto.com, being a cryptocurrency exchange platform, would seem less susceptible to AI pressure than, say, a news editorial or customer service team. Yet AI found justification for layoffs there too.

What is happening at Crypto.com is a symptom of a deeper phenomenon. It's not just about technology — it's about the narrative that corporations build around ruthless business decisions. Layoffs are never popular, but if they can be attributed to "inevitable technological changes," the narrative becomes easier to accept for both investors and the public.

When AI becomes a pretext for cost reduction

Crypto.com did not disclose details about which specific roles were eliminated or exactly how AI will replace the work of these 290 people. This is significant because it suggests that this might be about something more universal than actual automation. In the tech industry, we are dealing with a classic phenomenon: when revenues shrink or investor pressure grows, we look for justification for budget cuts. AI is the perfect pretext because it sounds modern, forward-looking, and — importantly — no one can predict exactly what it will be capable of doing in a year or two.

The difference between actual automation and using AI as a pretext is crucial. Real automation means that specific tasks — for example, content moderation, transaction processing, or answering standard questions — can be performed by AI models faster and cheaper than by humans. This is measurable, testable, and can be implemented. On the other hand, "a role that doesn't adapt to the new world" is phrasing so vague that it can mean practically anyone. Is it a junior developer who doesn't know the latest frameworks? Is it a manager who doesn't understand AI's potential? Or is it simply a person whose salary has risen above a certain threshold?

History shows that during previous technological shifts — from factory automation to office computerization — companies always emphasized the inevitable nature of change. Sometimes they were right, sometimes not. But it was always a combination of actual technical changes and pragmatic business decisions. In the case of Crypto.com, without detailed information, it's difficult to assess where the balance lies.

Cryptocurrency industry under pressure — is AI the real reason?

Crypto.com is by no means the first cryptocurrency exchange platform to conduct layoffs. However, it's worth remembering the context: the cryptocurrency sector is currently undergoing a crisis of trust and regulation. Following the spectacular collapse of FTX in 2022, the entire cryptocurrency ecosystem had to deal with increased regulatory scrutiny, declining investor interest, and general pessimism. Crypto.com itself went through turbulence — in 2023 it already conducted earlier layoffs, and its market value fluctuates depending on cryptocurrency market sentiment.

In this context, the statement about "roles that don't adapt to the new world" sounds particularly cynical. Did Crypto.com really build an entire AI infrastructure that will replace 290 employees? Or is it struggling with financial problems and looking for a way to explain the reduction in operating costs? The answer is probably somewhere in the middle, but given the history of the cryptocurrency industry, it's hard to ignore the possibility that AI is partly a pretext here.

It's also worth considering which roles can actually be replaced by AI on a cryptocurrency exchange platform. Customer support — of course, AI can be useful here. Data analysis and reporting — here too. But are these the roles that made up a significant portion of the 12% of laid-off employees? Or do the layoffs also include more strategic positions — for example, in product, marketing, or business development — which are harder to replace with AI, but easier to justify as "a role that didn't adapt"?

Comparison with other tech giants — is this a trend or a norm?

To understand whether Crypto.com is heading in the direction the entire industry is moving, it's worth looking at what larger corporations are doing. Meta laid off 21% of its workforce in 2023 — that was about 11,000 people. Mark Zuckerberg announced a "Year of Efficiency," and while AI was mentioned, the real reason was primarily that revenues were declining faster than expenses. Amazon laid off over 18,000 employees at the turn of 2022 and 2023, also citing preparation for the future and operational optimization.

Google, Microsoft, OpenAI — each of these companies conducted significant layoffs. Interestingly, in the case of OpenAI, whose business is directly related to AI, the layoffs were much smaller and more targeted. This suggests that companies that are actually investing in AI and counting on its revenues are not making mass cuts. Instead, companies with a more traditional business model — like Meta or Amazon — use AI as part of a broader narrative about transformation and efficiency.

Crypto.com fits the second pattern. A cryptocurrency exchange platform is not an AI-first company, but it's trying to position itself as a modern, innovative organization. Laying off 12% of employees, justified by AI integration, is part of this positioning. It's a message to investors: "We are ready for the future, we are efficient, we are making difficult decisions now to be stronger later."

What can AI actually automate in the cryptocurrency ecosystem?

If we want to assess whether the layoffs at Crypto.com are justified from the perspective of AI's actual capabilities, we should look at specific use cases. On cryptocurrency exchange platforms, AI can be useful in several areas:

• Fraud detection and compliance — AI systems can analyze transaction patterns and identify suspicious activity faster than a human. This is truly valuable and can reduce the need for large compliance teams.
• Customer support — chatbots based on large language models can handle most standard questions, reducing the burden on the support team. However, more complex issues still require human intelligence.
• Personalization of user experience — AI can analyze user preferences and suggest products or trading strategies. However, this requires significantly fewer employees than traditional product teams.
• Market analysis and reporting — generating reports, analyzing trends in the cryptocurrency market — all of this can be automated. However, these reports would need to be prepared by AI and then verified by humans.

If Crypto.com has actually implemented AI systems in these areas, the layoffs may be justified. However, without detailed information, it's difficult to assess the scale of actual automation. Are the 290 people all employees who worked on these tasks, or is this more of a general cut that also includes roles that won't be directly replaced by AI?

Consequences for the tech job market — is this the beginning of a bigger trend?

If the layoffs at Crypto.com are a symptom of a larger trend, the consequences for the job market could be significant. In recent years, tech has been a sector that offered high salaries, employment stability, and opportunities for rapid career development. If every company now uses AI as justification for layoffs, the job market could change significantly.

The Polish perspective is interesting here. Poland has a growing tech sector, with many startups and branches of international corporations. Many of these companies observe trends in Western tech and try to adapt to them. If layoffs justified by AI become the norm in the industry, the Polish tech scene will also come under pressure. This could mean that junior developers, who would have counted on rapid salary growth and stability, will have a much harder time.

On the other hand, layoffs can also create opportunities. Employees who remain can demand higher salaries for their work. Companies may also start looking for AI specialists — people who can implement and manage AI systems. This could create new opportunities for those who can adapt quickly.

The rhetoric of the "new world" — when technological change becomes an excuse

Marszalek's phrasing about "roles that don't adapt to our new world" is worth closer analysis. This is rhetoric we're hearing more and more from business leaders. The "new world" is a world in which AI is ubiquitous, in which traditional skills are less valuable, in which adaptation is key to survival. It sounds inevitable, almost like a force of nature that cannot be resisted.

However, the history of technology shows that "new worlds" are always the product of business decisions, not just technical changes. When computers began to replace typewriters, it was not an inevitable result of technological progress — it was the result of companies' decisions to invest in computers and lay off workers who worked on typewriters. Similarly, when the internet changed media, it was not an inevitable result — it was a combination of technical changes and publishers' decisions to reduce newsroom employment.

In the case of AI, the situation is similar. AI truly has the potential to change the way we work. But how this change will look depends on companies' decisions, regulations, and individual choices. It is not inevitable. Marszalek's phrasing suggests that it is, which is convenient for the company, but it doesn't have to be true.

Crypto.com's future and lessons for the industry

Crypto.com will now have to demonstrate that the layoffs actually brought the expected results. If the company operates more efficiently, with better products and faster customer service thanks to AI, the layoffs will be retroactively justified. However, if in six months the company is struggling with operational problems, poor customer service, and lack of innovation, it will be clear that the layoffs were primarily about cost cutting, and AI was the pretext.

For the tech industry, the situation at Crypto.com is a lesson in how AI is changing the dynamics of the job market. Companies that actually implement AI effectively will have a competitive advantage. But companies that use AI as a pretext for layoffs without actual operational changes may find themselves in a difficult situation. Employees will become more cautious, and the best talent may look for companies that are actually investing in AI, rather than using it as an excuse for cuts.

Ultimately, the layoffs at Crypto.com are more a story about how corporations communicate business changes than about AI's actual capabilities. AI is a real tool that can change the way we work, but it is also a convenient pretext for companies that want to reduce costs without creating the impression that they are simply ineffective. If this trend continues, we can expect more companies to announce layoffs justified by AI, regardless of whether they are actually implementing advanced automation systems or simply looking for a way to explain difficult business decisions.