Kraken To Cut Global Workforce

Kraken To Cut Global Workforce by Emily Clark last updated on December 21, 2022

Kraken to Cut Global Workforce

Kraken is a famous crypto exchange from the USA which falls under the category of centralized exchanges. According to recent news, the crypto firm has cut around 30% of its workforce. This amounts to 1100 employees of the Kraken. And according to the company, the crypto bear market is the culprit for this!

Kraken CEO and founder Jesse Powell recently stated that the company had to grow by almost three folds! This was done to continue serving its ever-growing customer base.

But the brutal crypto bear market seems to have made it difficult for Kraken to manage its operations efficiently. Recently, we have already seen the FTX exchange going down, which has raised fears that many others will follow suit.

To manage the situation, Kraken has gone on to fire a major portion of its workforce. This means that the team size of Kraken is now the same as it was around one year ago.

Low Trading Volumes & Clients

Ever since the start of 2022, geopolitical and macroeconomic situation has been weighing heavily on the markets. As a result, Kraken had to face low trading volumes and even lower new signs!

To solve the issue, Kraken had to slow down its hiring pace along with also dropping big money on marketing. But it seems that even that was not enough to manage the situation. As a result of this, the company was forced to let go of 30% of its employees.

However, the CEO made it clear that everyone who was laid off would be offered 4 months of benefits and healthcare coverage. Despite all that's happening in the markets, the Kraken CEO was optimistic that the crypto has a great future and Kraken will also grow along with it as well.

Now the question remains is that whether this move by Kraken will be enough to control the damage or not!