Kraken, one of the oldest cryptocurrency exchanges, lost 30% of its global workforce, laying off around 1,100 people “in order to adapt to current market conditions”.
The action, which the US-based crypto exchange announcement Wednesday comes at a time when some crypto firms based in the country are facing bankruptcy proceedings. These include Chicago FTX.USthe American branch of FTX under siege; and New Jersey-based crypto lenders BlockFi and Celsius Network.
However, Kraken attributed the move to “negative influences in financial markets.” The exchange explained that it tripled its workforce during the crypto market boom in recent years. However, with the market downturn lately, it had no other “preferable options” to reduce operational costs.
“Since the beginning of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in a significant drop in trading volumes and fewer customer sign-ups. We responded by slowing hiring efforts and avoiding big marketing commitments,” Jesse Powell, co-founder and CEO of Kraken explained in the statement.
Powell further noted that the action, which returns the exchange’s workforce to its size of just 12 months ago, will allow the exchange to “sustain the business for the long term.” It will also allow Kraken to continue to “create world-class products and services in selective areas that add the most value for our customers.”
Recent mass layoffs
Kraken’s action is a continuation of the massive crypto industry downturn that began a few months ago. Crypto firms that have laid off significant portions of their teams have all cited increasing market volatility.
In June, based in New York Gemini reduced its workforce by 10%, Coinbase 18% and BlockFi, now bankrupt, 20%. Crypto.com, a Singapore-based crypto exchange, also reduced its workforce by 5% or 260 employees.
On the contrary, however, leading crypto exchange Binance announced a few months ago it was recruiting talent for 2,000 vacancies. Seychelles-based cryptocurrency exchange KuCoin has also previously clarified that it does not intend to make any significant changes to its hiring plan for this year.
In a recent interview with
finance tycoons, Dr. Christopher Smithmyer, an adjunct professor at Doane University, a private university in Nebraska, criticized crypto exchanges for not saving up for rainy days. Smithmyer, who is the author of Dragons of the Digital Age, also believes that a crypto winter is a good way to test the crypto market to sort out mediocre and weak performers.
Kraken, one of the oldest cryptocurrency exchanges, lost 30% of its global workforce, laying off around 1,100 people “in order to adapt to current market conditions”.
The action, which the US-based crypto exchange announcement Wednesday comes at a time when some crypto firms based in the country are facing bankruptcy proceedings. These include Chicago FTX.USthe American branch of FTX under siege; and New Jersey-based crypto lenders BlockFi and Celsius Network.
However, Kraken attributed the move to “negative influences in financial markets.” The exchange explained that it tripled its workforce during the crypto market boom in recent years. However, with the market downturn lately, it had no other “preferable options” to reduce operational costs.
“Since the beginning of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in a significant drop in trading volumes and fewer customer sign-ups. We responded by slowing hiring efforts and avoiding big marketing commitments,” Jesse Powell, co-founder and CEO of Kraken explained in the statement.
Powell further noted that the action, which returns the exchange’s workforce to its size of just 12 months ago, will allow the exchange to “sustain the business for the long term.” It will also allow Kraken to continue to “create world-class products and services in selective areas that add the most value for our customers.”
Recent mass layoffs
Kraken’s action is a continuation of the massive crypto industry downturn that began a few months ago. Crypto firms that have laid off significant portions of their teams have all cited increasing market volatility.
In June, based in New York Gemini reduced its workforce by 10%, Coinbase 18% and BlockFi, now bankrupt, 20%. Crypto.com, a Singapore-based crypto exchange, also reduced its workforce by 5% or 260 employees.
On the contrary, however, leading crypto exchange Binance announced a few months ago it was recruiting talent for 2,000 vacancies. Seychelles-based cryptocurrency exchange KuCoin has also previously clarified that it does not intend to make any significant changes to its hiring plan for this year.
In a recent interview with
finance tycoons, Dr. Christopher Smithmyer, an adjunct professor at Doane University, a private university in Nebraska, criticized crypto exchanges for not saving up for rainy days. Smithmyer, who is the author of Dragons of the Digital Age, also believes that a crypto winter is a good way to test the crypto market to sort out mediocre and weak performers.