Kraken, one of the largest crypto exchanges in the world has announced that they are laying off around 30% of its existing headcount. Moreover, the company is reducing more than 1,000 jobs in a bid to adopt to the changing market conditions.
Reduction in customer demand
Kraken is the world’s third largest exchange of crypto currency based in California. The company’s CEO announced on Wednesday that Kraken is laying off around 1,000 employees. Moreover, co-founder and CEO Jesse Powell wrote in a blogpost that slowing growth and macroeconomic and geopolitical factors had muted customer demand. Therefore, this a led to lowering of trade volumes and cutting of new sign-ups. Hence, the company has taken this drastic decision to cut jobs in order to adapt to current market conditions.
“We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us. his reduction takes our team size back to where it was only 12 months ago. I remain extremely bullish on crypto and Kraken.” Jesse Powell further added to his statement.
Fall is cryptocurrency prices
In recent times, higher interest rates and economic woes has affected cryptocurrencies. Moreover, investors are also shedding risky assets. On top of it, FTX’s recent bankruptcy has added to the uncertainty. The FTX episode has forced Bitcoin price to fall to a two-year low. Furthermore, crypto exchange’s fall led global authorities to tighten regulations and start probes in various platform. In addition, the prices of cryptocurrencies have lowered further and is forcing the exchange companies to cut jobs.
Earlier this month, crypto exchange Coinbase Global also cut jobs. Similarly, Kraken slowed hiring and pulled back marketing spending. Surprisingly, Kraken claimed a few months back that they are planning to hire 500 employees. However, contrary to those claims the company has now announced job cuts.
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