Saturday, January 28, 2023

Crypto platform Kraken lays off 30% of staff due to market conditions

The Kraken cryptocurrency exchange platform, one of the most prominent in the world, announced this Wednesday that it will lay off 30% of its global workforce, some 1,100 people, due to poor conditions in the financial markets.

The company’s top executive, Jesse Powell, signed a text on the corporate blog titled “Kraken takes steps to weather the crypto winter” to announce the move and justify it with the argument that the great growth of recent years has faded and faded. needs a resize.

Noting that the workforce is back to the same size as 12 months ago, Powell explains that he recently slowed hiring and halted marketing “big engagements” amid macroeconomic and geopolitical factors weighing on markets and his business.

“Unfortunately, the negative influences in the financial markets have continued and we have exhausted the best options to adjust the costs to the demand”, he adds.

Kraken already made headlines on Monday when it emerged that it had been investigated for violating US sanctions on Iran by allowing Iranian users to transact for several years, for which it agreed to pay a $362,000 fine to close the case.

The cryptocurrency sector has been rocked in the last month by the fall of the FTX platform, which had been on a stellar rise until a liquidity crisis exposed the mismanagement of its owner, Sam Bankman-Fried, now under investigation by the authorities.

The bankruptcy of FTX, which is estimated to have more than a million creditors, has dragged down other platforms exposed to its assets such as BlockFi and weighed down the price of the main digital currencies such as bitcoin and ethereum, in addition to undermining confidence in the sector.

The person in charge of Kraken, however, said that he remains “extremely” optimistic regarding the future of the sector and his own business, and specified that he dismisses his workers with a series of benefits, including compensation, bonuses, immigration advice and help to find new opportunities.

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