Crypto Exchange Kraken Lays off 30% of Workforce Amid Crypto Winter

Cryptocurrency exchange Kraken said on Wednesday (Nov. 30, 2022) it would cut its global workforce by 30%, or approximately 1,100 employees.

The exchanged explained in a blog post: "Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups."

Jesse Powell, Kraken's Co-Fouder and CEO, stated: "We responded by slowing hiring efforts and avoiding large marketing commitments. Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand."

To minimize the impact of FTX's collapse as much as possible, in mid-November, the exchange froze the accounts on its platform belonging to FTX Group, Alameda Research and their executives. However, Kraken has to joined the ranks of layoffs with Lemon Cash​, NYDIG, WazirX​ and other crypto exchanges amid the crypto winter.