Cryptocurrency exchange Kraken finds itself forced to lay off 30% of its staff, or around 1,100 people. However, the company announced last June that 500 positions were to be filled as part of its development, but the state of the market, already damaged since the beginning of the year, has since worsened considerably.

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Kraken part ways with some of its staff

New layoff announcement in the cryptocurrency exchange ecosystem. Jesse Powell, CEO of Krakenannounced via a blog post that the exchange would have to let go of 30% of its staffapproximately 1,100 employees internationally.

“Since the beginning of the year, macroeconomic and geopolitical factors have weighed on the financial markets. This resulted in a significant drop in trading volumes and a decrease in the number of customer registrations. We responded by slowing hiring efforts and avoiding major marketing engagements. Unfortunately, the negative influences on the financial markets have continued and we have exhausted the preferable options to align costs with demand. »

The employees affected by this sad news will receive certain benefits after their departure from Kraken in the form of social benefits, performance bonuses or severance pay.

The transition from the year 2021 to the year 2022 has proven to be complicated for many companies within the cryptocurrency ecosystem, due to a lasting bear market combined with global macroeconomic instability.

Indeed, the year 2021 was the year of all records for cryptocurrencies and in particular was able to observe the highest price ever recorded of more than 69,000 dollars for Bitcoin (BTC). Consequently, many companies found themselves in a certain market momentum and had to recruit accordingly. But the year 2021 has caused the quite opposite effect.

Kraken’s decision is fraught with meaning: the exchange announced last June that it did not intend to lay off staff and even that 500 positions were to be filled within the company. Moreover, by its creation in 2011, Kraken is one of the cryptocurrency exchange platforms the oldest and most resilient in the ecosystem.

👉 Related – Kraken Pays Over $360,000 to OFAC for Iran Sanctions Violation

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Source: Kraken

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.

Maximilien Prue

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