rypto.com cuts 12% of workforce as CEO bets on AI-driven efficiency amid industry layoffs

Kris Marszalek, the CEO of Crypto.com, became the latest to announce a workforce reduction. The American crypto exchange executive did not mince words when it came to why 12% of the company’s staff had to start looking for new jobs. He argued that pairing the best AI tools with “top-performers” would allow the exchange to reach a new level of efficiency. 

However, it has not been smooth sailing for firms that cut employees in favor of AI agents, as Dorsey’s Block is now reconsidering its decision and attempting to bring back some of the human workforce it let go in February.

Is AI a real tool for efficiency?

In the first quarter of 2026, the tech industry has already seen over 30,000 job cuts. Amazon recently eliminated 16,000 corporate roles to make room for AI agents, and Meta cut over 1,000 positions in its own AI division to “slim down” operations.

Kris Marszalek, the CEO of Crypto.com, recently took to social media to announce a 12% reduction in the company’s workforce. Marszalek stated that Crypto.com is now joining other firms to integrate AI into its operations. He argued that pairing the best AI tools with “top-performers” would allow the exchange to reach a new level of efficiency.

Marszalek stated that companies that do not integrate AI into their operations would be left behind. The 12% cut specifically targeted roles that the company believes do not fit into its new, AI-driven workflow.

Meanwhile, Block, led by Jack Dorsey, has taken a far more aggressive approach. Cryptopolitan previously reported that Jack Dorsey’s Block let go of 40% of its workforce, over 4,000 employees. The company now has a total staff of just under 6,000.

However, since the massive firing, several employees have shared stories of being brought back almost immediately.

A recently rehired design engineer focused on agentic UX, Andrew Harvard, posted an update shortly after he was laid off, stating that Block leadership overturned his termination, claiming it had been a “clerical error.”

Another employee, Chane Rennie, a Creative Strategy Lead, also shared that they were asked to rejoin the company just one week after the mass cuts.

Richard Hesse, a 15-year veteran with Block, had to spend several days convincing the hierarchy that he could not maintain “highly critical” infrastructure for Square and Weebly customers alone.

Ultimately, some of his former colleagues were rehired.

The debate surrounding these layoffs often centers on whether AI is actually ready to replace these workers or if it is a convenient excuse for management errors. Cryptopolitan reported that Dorsey admitted to incorrectly building separate structures for Square and Cash App between 2019 and 2022. During that period, the company’s headcount tripled.

Staff return to work after AI layoffs

Companies jumping on the AI integration wave are finding out in real time that AI can write code and organize data, but it cannot yet manage the complex infrastructure that powers large-scale companies.

IBM previously dismissed about 8,000 employees in its Human Resources division due to AI integration, but in 2025, it was reported that the firm had to re-engage thousands of roles. These employees are often brought back specifically to oversee the complex AI systems that were intended to replace them.

Arvind Krishna confirmed that efficiency gains from AI allowed the firm to reinvest in human-heavy areas like software engineering and sales.

Similarly, Klarna CEO Sebastian Siemiatkowski admitted that the company was rethinking its approach after initial claims that its AI assistants could do the work of 700 full-time employees.

The home renovation platform Livspace also walked back its decision to cut 25% of its staff, amounting to roughly 1,000 roles, to push toward an “AI-native” model in February 2026.

The smartest crypto minds already read our newsletter. Want in? Join them.