Kraken, a cryptocurrency exchange, has stated that it will lay off 300 of its 1,100 staff. Kraken CEO Jesse Powell said on the company’s blog that the move was made to assist Kraken in surviving the “crypto winter.”
As of June, Kraken, a cryptocurrency exchange platform, has stated its intention to hire 500 new employees so long as their values were consistent with the company’s “crypto-first culture,” which presumably includes avoiding labelling the views of others as “toxic, hateful, racist, or xenophobic.” After a period of fast expansion, Kraken is currently cutting back on spending due to “significantly lower trading volumes and fewer client sign-ups.”
According to Powell, Kraken tried to adapt to the unstable economy by cutting back on recruiting and “avoiding large marketing commitments.” Still, the company eventually ran out of cost-cutting options. Those terminated from their jobs will receive 16 weeks of severance compensation and four months of health insurance coverage. Furthermore, Kraken will assist employees in acquiring company-sponsored visas and equip them with career networking resources.
“I’m confident the steps we are taking today will ensure we can continue to deliver on our mission which the world needs now more than ever before,” Powell writes. “I remain extremely bullish on crypto and Kraken.”
Kraken settled sanctions violations against Iran claims with the US Department of the Treasury earlier this week for more than $360,000. Recently, DoorDash announced that it would be laying off about 1,250 people, and now comes word that the Kraken will be doing the same. This underscores the broader challenges of the crypto business in the wake of FTX’s collapse and comes after a wave of job cuts that impacted staff at Meta, Amazon, Snap, Twitter, and several others.