Cryptocurrency exchange Kraken lays off 1,100 employees


© Reuters

Investing.com – Kraken, one of the world’s largest cryptocurrency exchanges, is following the current trend in the crypto space and laying off about 30% of its workforce, or 1,100 people, “to accommodate the changing current market conditions,” said co-founder and CEO Jesse Powell.

Powell explained that slowing growth, driven by “macroeconomic and geopolitical factors,” dampened customer demand, lowered trading volumes and reduced listings.

“We have had to grow rapidly, more than tripling our headcount, in order to provide these customers with the quality and service they expect from us. This reduction brings the size of our team back to what it was a year ago. only 12 months. I remain extremely bullish on crypto and Kraken.”

The crypto has indeed been under pressure for a while as US monetary policy tightens more and more. The sector is still expecting further rate hikes which could have an even greater impact on activity.

Additionally, crypto exchanges have been rocked by pullbacks and regulatory scrutiny following the FTX implosion. The latter filed for bankruptcy on November 28 and laid off several hundred employees as part of the restructuring process.



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