Cryptocurrency exchange Kraken has become the latest crypto giant to reorganize its business structure amid the ongoing crypto winter by laying off 1,100 people (or 30% of staff).
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
Kraken CEO, Jesse Powell, said in a blog post that the move was made in order to "adapt to current market conditions." He added:
"We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us. This reduction takes our team size back to where it was only 12 months ago."
Powell also cited macroeconomic and geopolitical factors as the reason behind lower trading volumes and fewer client sign-ups. Even though Kraken slowed hiring efforts, negative influences have ruled out "preferable options for bringing costs in line with demand," Kraken boss noted.
In October, cryptocurrency broker NYDIG also laid off 110 employees to focus more on "more-promising businesses." Although the broker made no official comments regarding the matter, the number reportedly represents a third of NYDIG's workforce.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange