Kraken is the latest cryptocurrency company to announce layoffs. A Co-founder and CEO Jesse Powell said in a blog post, “We are decreasing our worldwide workforce by about 1,100 individuals, or 30 percent, in order to respond to current market realities.” Powell had already indicated that he will resign in September.
Kraken declared in June that it has no intentions to modify its recruiting ambitions. The company said at the time in a blog post, “We have no plans for layoffs. We have over 500 positions to fill before the end of the year, and we feel that bear markets are wonderful for separating people following hype from those who really believe in our cause.”
This led to much-reduced trading volumes and fewer customer sign-ups, he said. According to statistics from The Block, crypto exchange volumes have decreased to $659 billion this month from $841 billion in January of this year.
In response, Kraken slowed its employment efforts and avoided major marketing commitments, according to the report.
“Unfortunately, unfavorable pressures on the financial markets have persisted, and we have exhausted all viable alternatives for lowering expenses in line with demand,” he added.
In spite of the fact that today’s news contradicts the company’s previous letter, the situation has shifted significantly since June. As the crypto credit crisis continues, bankruptcies have worsened the economic depression. Across the crypto industry, layoffs have increased, notably at Dapper Labs and BitMex.
Coinbase initiated layoffs in June, at the onset of the cryptocurrency bear market when it terminated about 1,100 people or 18% of its employees at the time.
The decision, according to CEO Brain Armstrong, was intended to preserve the company’s health amid the economic crisis. The corporation expanded too rapidly and “overhired” employees. Coinbase continues to reduce its workforce as needed, laying off 60 people in November.
Also Read: Genesis Crypto Brokerage Struggles To Avoid Insolvency
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