Kraken cuts around 30% of staff

The cryptocurrency exchange Kraken laid off about 1,100 employees, or around 30% of its staff, to “adapt to current market conditions”.

According to Kraken’s co-founder and CEO, Jesse Powell, the layoffs bring the headcount back to year-ago levels.

He noted that since the start of 2022 macroeconomic and geopolitical factors have weighed on the financial markets. The exchange has seen trading volumes and the number of subscribers fall significantly.

“In response, we slowed hiring and avoided large marketing commitments. Unfortunately, the negative impact on the financial markets persists, and we have exhausted the preferred options to bring costs in line with demand,” Powell said.

Kraken will continue to pay salaries to the laid-off employees for 16 weeks and will provide four months of free medical coverage. The company will also pay the bonuses due to them, assist with job placement, and provide visa support if needed.

“I am confident that the steps we are taking will enable us to continue our mission, which is needed by the world now more than ever. I remain bullish about the crypto industry and Kraken,” Powell concluded.

Earlier in September, he said that will leave the CEO post. His place will be taken by chief operating officer Dave Ripley.

The latter has already spoken out against Kraken’s registration with the U.S. Securities and Exchange Commission and compliance with regulator requirements for delisting tokens.

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