Kraken cuts its workforce by 30% in an effort to survive the crypto winter
According to its CEO, the exchange has grown too quickly to keep up with the fast-growing crypto ecosystem.
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Cryptocurrency exchange Kraken announced on November 30 that it had made one of its "toughest decisions" and was cutting its global workforce by approximately 1,100 people, or about 30% of its total workforce, under current market conditions.
According to CEO and co-founder Jesse Powell, Kraken had to triple its workforce due to the rapid growth of the crypto ecosystem, and the current setback brings the company's team size down to what she was 12 months ago. Powell shared in a tweet, “Macro was already tough and we held on, but recent industry woes have dampened near-term optimism about a crypto rebound.”
Tough day at @krakenfx. Headcount down 12 months. The macro was already tough and we held on, but recent industry woes have diminished near-term optimism about a crypto rebound. Better positioned now. Happy to have been able to take care of our former colleagues. been a privilege. ♂️ https://t.co/xfwShapS2N
— Jesse Powell (@jespow) November 30, 2022Dropping transaction volumes and dwindling customer signups amid turbulent market conditions contributed to Kraken's decision to cut expenses by slowing recruiting efforts and avoiding large marketing engagements.
According to the exchange, these changes are necessary “to sustain the business for the long term while continuing to develop world-class products and services in selective areas that add the most value for our customers.”
The company said laid-off employees receive a decent severance package, which includes severance pay covering 16 weeks of base salary, performance bonuses, four months of medical coverage including counseling, employment assistance, immigration and career assistance, among other benefits.
Related: U.S. Legislator Qu...
According to its CEO, the exchange has grown too quickly to keep up with the fast-growing crypto ecosystem.
New
Cryptocurrency exchange Kraken announced on November 30 that it had made one of its "toughest decisions" and was cutting its global workforce by approximately 1,100 people, or about 30% of its total workforce, under current market conditions.
According to CEO and co-founder Jesse Powell, Kraken had to triple its workforce due to the rapid growth of the crypto ecosystem, and the current setback brings the company's team size down to what she was 12 months ago. Powell shared in a tweet, “Macro was already tough and we held on, but recent industry woes have dampened near-term optimism about a crypto rebound.”
Tough day at @krakenfx. Headcount down 12 months. The macro was already tough and we held on, but recent industry woes have diminished near-term optimism about a crypto rebound. Better positioned now. Happy to have been able to take care of our former colleagues. been a privilege. ♂️ https://t.co/xfwShapS2N
— Jesse Powell (@jespow) November 30, 2022Dropping transaction volumes and dwindling customer signups amid turbulent market conditions contributed to Kraken's decision to cut expenses by slowing recruiting efforts and avoiding large marketing engagements.
According to the exchange, these changes are necessary “to sustain the business for the long term while continuing to develop world-class products and services in selective areas that add the most value for our customers.”
The company said laid-off employees receive a decent severance package, which includes severance pay covering 16 weeks of base salary, performance bonuses, four months of medical coverage including counseling, employment assistance, immigration and career assistance, among other benefits.
Related: U.S. Legislator Qu...
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