Large-scale layoffs due to AI implementation are happening one after another in Silicon Valley, but the cryptocurrency industry is not immune to this wave either. Last week, a major cryptocurrency exchange announced layoffs of about 14% of its employees, roughly 700 people, citing AI-driven business model restructuring as the reason.

According to documents filed with regulators, the company expects to spend between $50 million and $60 million on severance and benefits. The company's CEO stated, "AI is fundamentally changing how companies operate, and we are restructuring our organization to lead this new era." He also cited the ongoing volatility in the cryptocurrency market as an important reason, emphasizing the need for immediate cost structure adjustments during a bear market.

Interestingly, this trend is not limited to just crypto companies. Meta reduced about 10% of its workforce and closed 6,000 job openings. Microsoft also introduced early retirement programs to support large-scale AI investments. Fintech firm Block has cut nearly 40% of its employees.

Coinbase Global's stock price is also not unrelated to this overall industry trend. The company plans to reorganize into a small team managing AI agents (digital bots) capable of handling programming tasks. Human managers are also expected to work closely with these teams. In other words, a significant structural reform, including management layers, is underway.

What aligns with the logic of major tech companies we've seen so far is the rapid improvement in AI code generation capabilities, which is directly impacting software engineers. The entire industry is undoubtedly at a turning point.

However, for crypto companies, they face not only the pressure of AI transformation but also the cyclical fluctuations of the market. Since revenue heavily depends on cryptocurrency prices and trading volume, profitability is severely squeezed during bear markets. The company's CEO emphasized that these layoffs are not reactive but proactive measures. They aim to utilize market downturns to streamline the organization and prepare for the next cycle.

Looking at these industry-wide trends, it’s clear that we should keep a close eye on how technology companies will evolve.