Kraken cuts workforce by 30% in an effort to survive crypto winter
Cryptocurrency exchange Kraken announced on Nov 30, that it has made “one of the hardest decisions” to cut down its global workforce by approximately 1,100 people, making up approximately 30% of its total workforce, amid current market conditions.
According to the CEO and co-founder Jesse Powell, Kraken had to triple its workforce due to the fast-growing crypto ecosystem, and the current pullback takes the company’s team size back to where it was 12 months ago. Powell shared in a tweet; "Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto bound."
Rough day at @krakenfx. Headcount rolled back 12 mos. Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto rebound. Better positioned now. Glad we were able to take good care of our former colleagues. Been a privilege. ♂️ https://t.co/xfwShapS2N
Lower trading volumes and fewer client sign-ups amid turbulent market conditions have contributed to Kraken’s decision to cut down its expenses, by slowing down hiring efforts and avoiding large marketing commitments.
According to the exchange, these changes are necessary “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.”
The company indicated that employees being let go were given a decent severance package which include; separation pay which covers 16 weeks of base pay, performance bonuses, four months of healthcare coverage including counseling, immigration support, as well as career support, among many other benefits.
Related: US lawmaker questions major crypto exchanges on consumer protection amid FTX
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