Crypto.com cuts 12% workforce as CEO warns AI shift is ‘do or die’

Crypto.com has reduced its workforce by roughly 12% as part of a broader push to integrate artificial intelligence across its operations, with CEO Kris Marszalek warning that companies slow to adopt AI risk being left behind.

In a statement, Marszalek said the firm is moving toward “enterprise-wide AI,” arguing that companies that fail to pivot “will fail,” while those that move quickly could achieve “a level of scale and precision that was previously impossible.”

The layoffs affect roles deemed incompatible with the company’s new AI-focused direction. Affected employees have been notified and are receiving transition support, according to the announcement.

The move follows Crypto.com’s earlier acquisition of the premium domain AI.com, reportedly for $70m, signaling a deeper strategic commitment to artificial intelligence.

AI pivot meets cost discipline

Crypto.com’s decision reflects a growing shift across the crypto industry, where firms are increasingly combining cost-cutting measures with long-term bets on automation and AI-driven efficiency.

Rather than purely reacting to market conditions, the company framed its layoffs as a structural reset — replacing traditional roles with AI-augmented workflows.

This marks a notable evolution from previous crypto downturns, where layoffs were largely tied to collapsing prices and liquidity crises. Now, workforce reductions are also being driven by technological realignment.

Algorand cuts 25% amid market pressure

The trend is not isolated.

On 18 March, the Algorand Foundation confirmed a 25% workforce reduction, citing macroeconomic uncertainty and continued weakness in crypto markets.

The Foundation described the decision as a move to better align resources with long-term priorities, including protocol development and ecosystem growth.

Unlike Crypto.com’s AI-led restructuring, Algorand’s layoffs appear more directly linked to external pressures, including market downturns and funding constraints.

Final Summary

• Crypto layoffs are increasingly tied to AI-driven restructuring rather than just market downturns, signaling a shift toward leaner, automated operations.
• Firms that successfully integrate AI while maintaining execution speed may gain a lasting competitive edge in the next market cycle.