Home Finance Cryptocurrency crisis: Kraken to cut its workforce by 30 percent

Cryptocurrency crisis: Kraken to cut its workforce by 30 percent

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As employee layoffs continue in the midst of the crypto winter, crypto-currency exchange Kraken has announced that it will be cutting its global workforce by 30 percent, or 1,100 people. The announcement comes in response to deteriorating market conditions that have dashed hopes for a quick turnaround in the crypto-currency market.

Earlier in the year, Kraken continued to hire new employees as crypto companies like Coinbase and BlockFi announced layoffs. At the time, Kraken noted that it would fill 500 roles by the end of the year.

We think that bear markets are fantastic for weeding out candidates who are looking for publicity and those who truly believe in our mission“, the company said.

With two-thirds of the crypto market’s total capitalization gone, the exchange reversed its original position, citing the industry’s recent woes. Kraken also noted that market volatility has led to a decline in exchange volumes and listings. Therefore, reducing its staff to what it was 12 months ago was the only viable option left.

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CEO: employee layoffs are necessary to ensure long-term sustainability of the company

According to the CEO and co-founder Jesse PowellKraken explored all other options for termination, leaving employee termination as the only tenable option.

According to the stock exchange, employee layoffs will help it continue its business for the long term. The company also said it would continue to develop world-class products and services in the areas most valuable to its customers.

At the same time, the company noted that each employee was terminated with a severance pay, including 16 weeks base salary, 4 months medical coverage, access to counseling services, and a bonus for eligible employees.

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In addition, terminated staff members with a company-sponsored visa will receive visa and immigration assistance. The grant will also allow departing employees to exercise their vested stock options and provide networking opportunities to facilitate job searches.

A year of layoffs

Kraken isn’t the only one that has decided to downsize. Throughout 2022, various blockchain and crypto companies have adjusted their headcount to stay afloat. In November alone, lemon Capital got rid of 38 percent of its workforce, while Unchained Capital let go 638 people (or 38 percent). Coinbase, Mythical Games, Dapper Labs, BitMEX and Galaxy Digital also laid off staff.

Outside of the blockchain and crypto industry, Meta cut 11,000 jobs while Stripe terminated 1,000 jobs. Whether it’s due to geopolitical tensions or macroeconomic conditions, one thing is clear: 2022 is the year of layoffs.

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