Kraken, one of the leading cryptocurrency exchanges, has announced that it will be laying off 30% of its workforce. Citing “macroeconomic and geopolitical factors,” Kraken says that trading volumes have decreased and they need to reduce costs in order to stay afloat. The company is offering employees 16 weeks of pay, along with other benefits like health care and counseling services.
“Today we’re announcing one of the hardest decisions at Kraken to date,” said Kraken’s co-founder and CEO Jesse Powell on the company blog. “We’re reducing our global workforce by approximately 1,100 people, or 30 percent, in order to adapt to current market conditions.”
This comes at a time when the crypto industry is seeing a number of layoffs, as firms struggle to stay profitable in the current market conditions. This is not the first time Kraken has cut back its workforce, as the company had to reduce staff in 2017 due to similar market conditions.
The layoffs at Kraken are a sign of how difficult it can be for crypto firms to remain profitable during economic downturns. Despite this setback, Kraken still remains one of the top exchanges by volume and is committed to providing its customers with the best service possible.
It is unclear how the crypto industry will fare in the future, however Kraken’s layoffs are a reminder of how important it is for firms to remain agile and adaptive in order to survive and thrive in times of market uncertainty.