In a new statement, Kraken co-founder and former CEO Jesse Powell says that the current macroeconomic and geopolitical conditions have resulted in significantly lower trading activities and sign-ups on the platform.
The executive says that Kraken has exhausted all other means to align costs with demand, compelling the company to let go of 1,100 workers or 30% of its employees.
“As one of the longest running global crypto exchanges, founded in 2011, we have successfully navigated many market cycles and our strategy has always included thoughtful cost management and spending.
These changes will allow us to sustain the business for the long-term while continuing to build world-class products and services in selective areas that add the most value for our clients.”
Departing employees will receive separation pay, healthcare coverage for the next four months, performance bonuses for eligible individuals, extended windows to exercise vested stock options, immigration support for those on company-sponsored visas and outplacement support.
Kraken announces the retrenchment after agreeing to pay a fine of $362,159 to settle with the Treasury Department’s Office of Foreign Assets Control (OFAC) over its alleged violation of sanctions against Iran.
Earlier this month, fellow crypto exchange giant Coinbase announced it is also laying off some of its employees to more effectively manage its expenses amid the bear market.