By
Temitope Olatunji
April 18th, 2024
Kraken isn’t alone in its decision to cut back on staff numbers. Throughout 2022, various blockchain and crypto companies have adjusted their staff numbers to stay afloat.
As employee layoffs continue amid crypto winter, cryptocurrency exchange Kraken has announced it will cut its global workforce by 30% or 1,100 people. The announcement comes in response to worsening market conditions that have dashed hopes of a quick crypto market turnaround.
Earlier in the year, Kraken continued to hire new employees while crypto firms like Coinbase and BlockFi announced layoffs. At the time, Kraken noted that it would fill up 500 roles before the end of the year.
“We believe bear markets are fantastic at weeding out the applicants chasing hype from the true believers in our mission,” the firm said.
With two-thirds of the total crypto market cap gone, the exchange has reversed its initial stance citing recent industry woes. Kraken also noted that market volatility has resulted in lower trading volumes and lesser signups. Consequently, cutting back its staff strength to what it was 12 months ago was the only viable option remaining.
CEO: Employee Layoffs Necessary for Long-term Sustenance
According to CEO and co-founder Jesse Powell, Kraken has explored every other option to break, leaving employee layoffs as the only tenable option.
According to the exchange, the employee layoffs will help it continue business in the long term. The firm also noted that it would continue to develop world-class products and services in the most valuable areas for its clients.
Meanwhile, the company noted that every employee was let go with a decent severance package, including 16-week base pay, 4-month health coverage, access to counseling services, and a bonus for eligible employees.
In addition, sacked staff members on a company-sponsored visa would enjoy visa and immigration support. The exchange will also allow leaving employees to exercise their vested stock options and provide networking opportunities to aid in a job search.
A Year of Layoffs
Kraken isn’t alone in its decision to cut back on staff numbers. Throughout 2022, various blockchain and crypto companies have adjusted their staff numbers to stay afloat. Just in November, lemon Capital shed 38% of its workforce, while Unchained Capital let go of 638 people (amounting to 38%). Coinbase, Mythical Games, Dapper Labs, BitMEX, and Galaxy Digital also laid off some staff.
Outside of the blockchain and crypto industry, Meta slashed 11000 jobs while Stripe terminated 1000 jobs. Whether due to geopolitical tensions or macroeconomic conditions, one clear thing is that 2022 is the year of job layoffs.