To withstand the crypto cold, Kraken reduces employees by 30%.
Is the crypto Sector rapidly expanding?
According to the CEO, the exchange grew too quickly to support the rapidly expanding crypto sector.
Amid the present market conditions, cryptocurrency exchange Kraken said on Nov. 30 that it has made one of its “hardest decisions” and is reducing its global employment by about 1,100 workers or 30% of its overall workforce.
CEO and co-founder Jesse Powell said the rapidly expanding crypto ecosystem forced Kraken to quadruple its personnel. The recent reduction puts the company’s crew size back where it was a year ago. “Macro was already bad, and we held out,” Powell wrote in a tweet. “However, subsequent industry woes dampened near-term optimism about a crypto return.”
Kraken laying of 30% of staff to weather crypto winter.
Sad but glad to see @jespow et al are doing right by laid-off employees w/proper severancehttps://t.co/Ehxb1FhiqJ pic.twitter.com/JVUdbgI6Jk
— Jeff Roberts (@jeffjohnroberts) November 30, 2022
Why do fewer clients sign ups?
Kraken decided to reduce its spending by slowing down hiring efforts and avoiding significant marketing commitments due to lower trading volumes and fewer client sign-ups during volatile market circumstances.
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These modifications are required, said the exchange, “to sustain the business over the long term while continuing to develop world-class products and services in niche markets that bring the greatest value to our customers.”
What about healthcare performance bonuses?
The business said laid-off workers received good severance packages that included amenities, including separation money equivalent to 16 weeks of basic pay, performance bonuses, four months of healthcare coverage with counseling, immigration support, and career support.
Kraken declared in June of this year, despite the market downturn, that it would keep filling over 500 positions across multiple departments. At the time, the company’s hiring initiatives contrasted with significant layoff announcements from leading blockchain companies like Coinbase and BlockFi.
Kraken had argued in favor of the choice to keep hiring more people earlier in the year.
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What about the “awake activists” purpose?
“We haven’t changed our hiring strategy, and we don’t have any layoffs planned. Bear markets are great at separating the job seekers chasing hype from the actual believers in our purpose because we still have over 500 vacancies to fill this year.
However, recent layoffs paint a different picture from the CEO’s comments made in June, when he used the occasion to criticize purported “awake activists.” “while debating the business’ choice to bring on hundreds of additional staff.
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