Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crypto Exchange Kraken to Lay Off 1,100 as Industry Pain Deepens

Published 11/30/2022, 12:12 PM
Updated 11/30/2022, 12:18 PM
© Reuters Crypto Exchange Kraken to Lay Off 1,100 as Industry Pain Deepens

© Reuters Crypto Exchange Kraken to Lay Off 1,100 as Industry Pain Deepens

(Bloomberg) -- The crypto exchange Kraken is laying off 30% of its workforce, or about 1,100 people, as the fallout from this year’s digit-asset market meltdown worsens. 

The job eliminations at the world’s third-biggest crypto exchange by daily trading volume follows similar moves by rivals including Coinbase (NASDAQ:COIN) Global Inc. and Gemini. Many exchanges have seen revenue slump as trading activity fell off in recent months with crypto prices plunging. The recent collapse of the crypto exchange FTX added to market uncertainty.

“Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand,” the company said in a blog post Wednesday.

Kraken had recently expanded quickly, and the cuts will return its workforce to where it was a year ago, according to the blog.

“Mostly it’s an obvious follow on to declines in crypto trading volumes,” said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. “There’s also the near-universal tendency of tech firms to over-staff in good times, leading to the need for large layoffs in bad times.”

The layoffs come just days after Kraken agreed to pay more than $362,000 in a settlement with the Treasury Department for violating sanctions with Iran. It also comes about two months after its controversial co-founder Jesse Powell announced he’ll be stepping down as its chief executive officer.

(Updates with background on Kraken, analyst comment.)

©2022 Bloomberg L.P.

Latest comments

Investing in forex/crypto investment stands to be the best decision I've ever made in my life. With the help of a trust worthy broker which is 🅰🅼🅴🅻🅸🅰 🅻🆄🅲🅰🆂 🅵🆇🆃🆁🅰🅳🅴huge profits weekly despite the fluctuations of the market.I advise everyone to try her out on Insta✉️✉️ Gram
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.