Kraken, a popular digital currency trading platform based in northern California – is laying off more than 1,000 employees as it attempts to deal with the ongoing crypto winter.
The crypto exchange claims that the strategy has nothing to do with FTX’s demise, which has generated a major uproar in the digital currency market. The exchange went insolvent in mid-November, causing waves throughout the market and prompting many other organizations, like Block Fi, to follow suit.
Crane has described the platform’s development as a “marathon, not a sprint,” and he has accepted “full responsibility” for the choice to reduce workers. He also stated that every member of the SuperRare team will be remembered for the rest of the company’s history.
When news of FTX bankruptcy became public, Kraken was already examining its business and staffing requirements. Kraken had no financial ties to FTX.
Kraken specifically cites “macroeconomic and geopolitical circumstances” as the cause of its latest round of layoffs. With over 1,000 individuals losing their jobs as a result of the transaction, the corporation is losing around 30% of its personnel. Kraken stated in a statement:
As a result, trading volumes dropped dramatically and fewer clients signed up. As a result, we reduced hiring efforts and avoided big marketing commitments. Unfortunately, negative financial market influences have persisted, and we have exhausted optimal possibilities for bringing costs in line with demand.
Employees who are let go do not leave empty-handed. They have been promised 16 weeks of salary, which amounts to about four months of extra money while they seek for work elsewhere. They will also receive additional perks such as health insurance and counseling assistance. They will also have access to stock options, and staff on visas will receive immigration assistance.
Jesse Powell, the CEO of Kraken, added to the initial statement:
I’m certain that the changes we’re taking today will allow us to continue delivering on our goal, which the world needs now more than ever. I’m still quite bullish on crypto and Kraken.