Kraken fires 30% of workforce

The company said “geopolitical factors” in the cryptocurrency market have “weighed” on financial markets.

Cryptocurrency exchange Kraken is letting go of 1,100 of its employees, accounting for 30% of its workforce, due to the crash of Sam Bankman-Fried’s FTX.

Kraken co-founder Jessie Powell announced in a statement that “macroeconomic and geopolitical factors have weighed on financial markets”, causing the company to downsize as a “correction of growth from the prior year”.

“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”, he said.

This may seem like a swift move in the opposite direction from the company announcement made in June whereby it was looking to fill 500 more positions.

Kraken’s decision to minimise its workforce follows the collapse of FTX, causing bankruptcies and problems across the board for the cryptocurrency sector.

Cryptocurrency brokerage Genesis had $175m with the company and recently had to make announcements to its clients that it had frozen withdrawals.

Alongside Genesis, the crypto lending platform BlockFi filed for bankruptcy on Monday with documents stating it held $355m in assets with the crumbling firm.

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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