Kraken Exchange Slashes Workforce by 30% | Global Layoffs Enter Crypto

The impacts of the global crypto downfall are getting more evident with every passing day. As the crypto market is trying to compensate for the losses of the unanticipated FTX crash, another bad news is coming for the employees of Kraken Exchange.

On the last day of November, Jesse Powell, the Co-Founder of Kraken Exchange, announced that the organization will cut down its workforce by 1100 employees. 

This declaration from one of the biggest exchanges in the world is going to reduce the organization's size to where it was before in 2021.  Jesse Powell made it clear in his statement that it was “one of the hardest decisions” that Kraken management had to take. However, all laid-off employees are provided with proper severance of four-month base pay along with performance bonuses, insurance, counselling, career support, and other benefits. Kraken has also extended immigration support for those employees who have to leave the organization because of this decision. 

The reasons cited for these mass layoffs were the diminishing workforce requirement due to the inability of the exchange in onboarding new customers. 

Kraken shared a blog on its website to make a detailed official declaration. In the blog, Jesse Powell said, "Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups,"

The global markets have witnessed some major lay-offs in recent times including that of Meta, Amazon, Microsoft, and Alphabet Inc. Infavourable macroeconomic conditions in the world are becoming the reasons for reduced demand in the market and eventually forcing the companies to reduce their workforces. The same trend has steeped into the crypto industry with Kraken’s layoff. 

The crypto winter is expected to last for a while before cryptocurrencies regain their true value. This could be the best time for investors to accumulate more and HODL onto their assets and wait for the next spring.

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