Nov 30, 2022 - Technology

Kraken crypto exchange lays off 30% of workforce

Crystal Kim

Illustration of a tentacle about to shake hands. — Illustration: Aïda Amer/Axios

Kraken, one of the biggest and longest-standing crypto exchanges, said Wednesday it would be reducing its workforce by 30% or some 1,100 people.

What's happening: The reduction would put the team size back to where it was 12 months ago, the exchange said, citing a need to "adapt to current market conditions."

So-called Krakenites were informed Wednesday morning, the company said.

Why it matters: A true giant in crypto is now flinching in the face of what now seems a more certain, long slog that will be this crypto winter, joining the rash of tech firms that have already made cuts.

Details: "Negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand," Kraken CEO and co-founder Jesse Powell wrote in the company blog post.

Kraken is the third-largest crypto exchange based on spot-trading volume, according to CoinMarketCap.com.

Catch up quick: The arc of Kraken events this year is bookended by what the rest of the majors in crypto have already announced: belt-tightening. Here it is in reverse chronological order:

It settled sanctions violations.
FTX approached Kraken as a potential rescue partner.
Kraken founder and chairman Jesse Powell stepped down as CEO of the exchange.
The firm announced a hiring spree, right before an investigative story into the company's corporate culture was published.

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Kraken crypto exchange lays off 30% of workforce

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