Kraken announced that it has made one of its hardest decisions and is cutting down its global workforce by approximately 1,100 people, comprising approximately 30% of its total workforce, amid current market conditions.
According to CEO and co-founder Jesse Powell, Kraken had to triple its workforce due to the fast-growing crypto ecosystem, and the current pullback takes the size of the company’s team back to where it was 12 months ago.
Lower trading volumes and fewer client sign-ups amid turbulent market conditions have contributed to Kraken’s decision to cut down its expenses by slowing down hiring efforts and avoiding large marketing commitments.
According to the exchange, these changes are necessary to sustain the business for the long-term while continuing to build world-class products and services in selective areas that add the most value for our clients.
The company stated that employees being let go were given a decent severance package, which includes separation pay covering 16 weeks of base pay, performance bonuses, four months of healthcare coverage including counseling, immigration support and career support, among other benefits.
