In response to the decline in the cryptocurrency market, crypto exchange Kraken said on Wednesday that it is firing 30% of its global workforce, or roughly 1,100 workers.
“In response, we reduced employment and shied away from significant marketing commitments. Unfortunately, the financial markets have remained negatively impacted, and there are no better options left to match prices to demand.”
“Macroeconomic and geopolitical variables have affected financial markets since the beginning of this year. As a result, there were significantly fewer client sign-ups and trading volumes “explained Kraken in a blog post.
The value of bitcoin (BTC) has dropped by 63% since the end of 2021, and the market capitalization of all cryptocurrencies has decreased by more than two-thirds in the last year. Companies that increased personnel levels during the previous boom years were forced to reduce them during the downturn. Coinbase (COIN), a publicly traded exchange, cut 60 positions this month alone, and Unchained Capital, a provider of bitcoin financial services, cut more than 600.
As other businesses cut personnel and flooded the market with experienced workers, Kraken stated it was trying to expand as recently as June and that it intended to hire an additional 500 individuals.
It said, “We have not changed our hiring strategy, and we have no plans to make any layoffs.”
- Amid crypto winter, Kraken reduces its workforce by 30%
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