Crypto Exchange Kraken Fires 30% Workforce Amid Bear Market

BlockFi Layoffs

Prominent cryptocurrency exchange Kraken has laid off 30%, approximately 1,100 of its global workforce, to cope with the current market conditions. 

Announcing the move in an official blog post on Wednesday, the crypto exchange stated that the layoff takes the company’s headcount back to where it was a year ago.

“These changes will allow us to sustain the business for the long-term while continuing to build world-class products and services in selective areas that add the most value for our clients,” Kraken said.

Kraken Cuts Workforce by 30% 

Kraken stated that “macroeconomic and geopolitical factors” have led to “significantly” lower trading volumes and fewer client sign-ups on its platform.

According to the crypto exchange, since the bear market started this year, it has been responding by slowing down hiring and “avoiding large marketing commitments,” but as the bear market continued, Kraken said it “exhausted preferable options for bringing costs in line with demand.”

Powell Remains Bullish on Crypto

Jesse Powell, co-founder and CEO of Kraken, said despite the market conditions and the decision taken today, he remains bullish on crypto.

“I’m confident the steps we are taking today will ensure we can continue to deliver on our mission which the world needs now more than ever before. I remain extremely bullish on crypto and Kraken.”

The crypto exchange also revealed how it intends to support departing employees. Kraken said it would pay 16 weeks of base pay for all departing staff, offer them 4 months of healthcare continuation coverage, and provide them with career support.

Crypto Firms Cut Workforce Amid Bear Market

Meanwhile, Kraken has joined a growing list of crypto exchanges reducing headcount amid the bear market. In August, crypto brokerage company Genesis slashed 20% of its workforce to save operating costs.

Earlier this month, blockchain-focused financial services company Galaxy Digital reduced 20% of its headcount due to extreme market conditions. 

Several major crypto firms, including Coinbase, CryptoCom, Gemini, and Rain Financial, have also made similar moves.

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