Crypto Exchange Kraken Cuts Global Workforce by 30%

Gemini, Coinbase, BlockFi and Crypto.com have also pruned their teams in the last few months.

Kraken, one of the longest running cryptocurrency exchanges, has shed its global workforce by 30%, firing approximately 1,100 people “in order to adapt to current market conditions.”

The action, which the United States-based crypto exchange announced on Wednesday, comes at a time when some crypto firms based in the country are undergoing bankruptcy proceedings. These include Chicago-based FTX.US, the US subsidiary of beleaguered FTX, and New Jersey-based crypto lenders BlockFi and Celsius Network.

However, Kraken attributed the move to “negative influences on the financial markets.” The exchange explained that it had tripled its workforce during the crypto market boom in the past. However, with the market downturn in recent times, it had no other “preferable options” to bring down its operational cost.

“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups. We responded by slowing hiring efforts and avoiding large marketing commitments,” Jesse Powell, Kraken’s Co-Founder and CEO explained in the statement.