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Crypto Exchange Lays Off Over 1,000 Workers as ‘Crypto Winter’ Begins

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Kraken announced Wednesday that it will lay off 30% of its workforce in response to the cryptocurrency market downturn.

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Cryptocurrency exchange explained in a blog post that due to macroeconomic and geopolitical factors along with the state of the financial markets, Kraken has experienced significantly lower trading volumes and fewer customer registrations. In response to this general downturn, Kraken says it will reduce hiring frequency, avoid large market commitments, and reduce its global workforce by approximately 1,100 people to accommodate current market conditions.

Kraken explains that everyone “krakenites,” or individuals who have been laid off from the company, will receive 16 weeks of base salary, including paid leave, performance bonuses, four months of continuation of care, an extended time window for their stock options, immigration support and relocation support.

Crypto Exchange Lays Off Over 1,000 Workers As 'Crypto Winter' Settles Into 01

Kraken is just one of many companies grappling with the macroeconomic environment by laying off employees en masse, with Elon Musk recently laying off half of Twitter’s staff, Facebook making massive cuts in hiring frequency, and Amazon planning to lay off more than 10,000. workers

Notably, the cryptocurrency exchange announcing its downsizing comes after the implosion of what was the world’s second-largest cryptocurrency exchange, FTX. Since the FTX collapse, cryptocurrency exchanges around the world have been hit by a huge wave of withdrawals as cryptocurrency holders seek to secure their assets. Notably, Kraken ranks 15th in centralized cryptocurrency trading platforms, with a daily trading volume of $440 million.

In other cryptocurrency news, FTX’s top lawyers were attempting to seize power from former FTX CEO Sam Bankman-Fried (SBF) before the day SBF filed for bankruptcy and resigned. Reports indicate that FTX lawyers were trying to contact SBF and were ignored by the former CEO, who was allegedly clinging to the idea that he could save the company from bankruptcy. If you’re interested in learning more about the FTX collapse or about the exchange’s former CEO, Sam Bankman-Fried, check out the links above and below.

In other news, Elon Musk has said that he will receive a Neuralink brain implant when it becomes available.

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