Crypto exchange Kraken to cut about 1,100 jobs amid crypto winter
Cryptocurrency exchange Kraken has announced that it is laying off about 30% of its workforce.
Kraken's CEO Jesse Powell said Wednesday that, one of the world's largest U.S. based crypto exchanges, is laying off about 30% of its workforce, or 1,100 people to "adapt to current market conditions."
In a blog post, Powell wrote that slowing growth driven by "macroeconomic and geopolitical factors" has stifled customer demand, slashed trading volumes and reduced registrations.
“We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us,” said Powell. “This reduction takes our team size back to where it was only 12 months ago.” he added.
Kraken said it will offer 16 weeks of severance pay and extend the eligibility range for affected employees.
Crypto exchanges have been shaken by withdrawals and regulatory scrutiny following the FTX crisis. Sam Bankman-Fried's crypto empire filed for bankruptcy on November 28, laying off several hundred employees in the process of restructuring.
Barry Silbert's Digital Currency Group laid off about 13% of its staff in November. Crypto.com laid off 2,000 employees in October.
