Jesse Powell, CEO of cryptocurrency alternate Kraken, sits for {a photograph} on the firm’s San Francisco workplace in 2014.
David Paul Morris | Bloomberg by way of Getty Images
Kraken, one of many world’s largest crypto exchanges, is shedding about 30% of its headcount, or 1,100 individuals, “in order to adapt to current market conditions,” co-founder and CEO Jesse Powell mentioned Wednesday.
Powell wrote in a weblog put up that slowing progress, prompted by “macroeconomic and geopolitical factors,” had muted buyer demand, lowered buying and selling volumes and lower sign-ups.
“We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us,” Powell mentioned. “This reduction takes our team size back to where it was only 12 months ago.”
“I remain extremely bullish on crypto and Kraken,” Powell added.
Crypto exchanges have been buffeted by withdrawals and regulatory scrutiny after the implosion of FTX. Sam Bankman-Fried’s crypto empire filed for chapter on Nov. 28 and has shed a number of hundred staff within the restructuring course of.
Barry Silbert’s Digital Currency Group laid off about 13% of its workers in November. Crypto.com laid off 2,000 staff in October.
Kraken mentioned it should provide 16 weeks of compensation as severance and can lengthen the affected staff’ train window.
Correction: This story has been up to date to replicate that Kraken introduced it’s shedding 1,100 staff. A earlier headline gave an incorrect quantity.