Crypto exchange Kraken cuts 1,100 jobs
Crypto exchange Kraken today announced it’s letting go of 1,100 staffers. a company blog posted the announcement follows similar news from DoorDash in which it also announced that it was cutting staff.
News: Kraken is cutting staff and costs. This is not surprising given the gloomy macroeconomic environment and worsening crypto-land climes. Prior to the Kraken news, we’ve seen several high-profile implosions in and amongst web3 companies, and layoffs from other exchanges including the American crypto giant Coinbase earlier in the year.
Per Kraken, the 1,100 affected employees represent around 30% of its staff, making them stiffer than most cuts we’ve seen from tech companies this year, reductions that tended to land in the 10% to 20% range.
The exchange explained the reasons for the cuts by writing that it had “significantly lower trading volumes” and “fewer client sign-ups” this past year. Kraken said that the cuts were necessary despite attempts to reduce other expenses and lay off staff.
DoorDash mentioned “macro” effects that caused it to make cuts, striking an identical tenor regarding the market it is currently facing.
Layoffs are becoming more common in the technology market. Many tech companies, from startups to giants, have sought to cut their costs to respond to slower than expected growth or to the need to reduce unprofitability. Investor sentiment has changed and last year’s growth-at-all costs mantra has been surpassed by market expectations for cleaner P&L statements.
After a slight slowdown tech layoffs are now back up . The crypto market has experienced a sharper contraction than the technology market overall, so the Kraken cuts are not surprising, even though they make up a larger portion of the company’s overall workforce than we have seen in other companies.
Coinbase, Kraken and other companies have also reduced their personnel costs. OpenSea, another company that saw its valuation soar during the 2021-era startup and crypto boom, was forced to cut its headcount as well.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.