Kraken Cuts 30% of Workforce Amid Crypto Winter
The crypto exchange is laying off 1,100, after saying it was in hiring mode earlier this year.
Kraken said it is laying off 30% of its global staff which is around 1,100 people-as a response to the crypto market downturn.
In June, Kraken had said it was looking to expand as other companies laid off staff, flooding the market with experienced labour, saying it wanted to hire another 500 people.
Companies that ramped up staffing levels during the preceding boom years have had to cut back during the decline. In the month of November alone, publicly traded exchange Coinbase (COIN) trimmed 60 positions, and Unchained Capital, a bitcoin financial service than 600.
The company via a blog post said: “Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups.”
“We responded by slowing hiring efforts and avoiding large marketing commitments. Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand.”