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Crypto Winter Forces Kraken Exchange to Cut Staff by 30% – The Daily Hodl

Digital asset exchange Kraken is downsizing in order to stay afloat during the ongoing crypto winter that continues to plague the industry.

In a new statement, Kraken co-founder and former CEO Jesse Powell said that the current macroeconomic and geopolitical conditions have resulted in a significant drop in trading activity and listings on the platform.

The executive says Kraken has exhausted all other means to align costs with demand, forcing the company to lay off 1,100 workers, or 30% of its employees.

“As one of the oldest global crypto exchanges, founded in 2011, we have successfully navigated many market cycles and our strategy has always included thoughtful cost and expense management.

These changes will allow us to sustain the business for the long term while continuing to develop world-class products and services in selective areas that add the most value for our customers.

Departing employees will receive severance pay, medical coverage for the next four months, performance bonuses for those eligible, extended windows to exercise vested stock options, immigration assistance for corporate-sponsored visa holders and outplacement assistance.

Kraken announces retrenchment after agreeing to pay $362,159 fine to adjust with the Treasury Department’s Office of Foreign Assets Control (OFAC) over his alleged Iran sanctions violation.

Earlier this month, another crypto exchange giant Coinbase announced that it was also fire some of its employees to more effectively manage its expenses during a bear market.

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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Featured Image: Shutterstock/DigitalAssetArt

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