One of the major cryptocurrency exchanges, Kraken, is said to be laying off thirty percent of its staff, which amounts to one thousand and one hundred employees. On Wednesday, the CEO of the company, Jesse Powel, claimed that the reason for taking this step is to allow them to counter and adapt to the present circumstances of the market.
It was alleged by Powel in a blog post that the poor growth was driven by macroeconomic and geopolitical reasons, and that this had a dampening effect on the demand from their customers. As a direct consequence of this, the amount of trading that took place and the number of new users who signed up fell.
According to Powell, “we had to develop quickly, more than doubling our personnel in order to supply those customers with the kind of quality and service they anticipate from us.” “This decrease reduces our staff size down to where it was just 12 months ago,” Powel says, adding that he still has an optimistic outlook about Kraken and cryptocurrency.
The failure of the cryptocurrency exchange FTX has resulted in withdrawals and increased regulatory scrutiny of the industry. The cryptocurrency firm owned by Bankman-Fried filed for bankruptcy on November 28 and has since terminated the employment of hundreds of its staff members in an effort to restructure its business.
Krakken is ready to give a severance package consisting of 16 weeks of salary and will also prolong the exercise window for the workers who will be negatively impacted.
Compiled by Coinbold