ccording to CEO and co-founder Jesse Powell, due to the rapidly expanding crypto ecosystem, Kraken would have to triple its workforce, and the current pullback reduces the company's team size to where it was a year ago. "Macro was already tough and we held out," Powell said in a tweet, "but recent industry woes have diminished near-term positivity about a crypto rebound."

Lower trading volumes and very few client sign-ups have helped contribute to Kraken's decision to cut costs by slowing hiring efforts and attempting to avoid large marketing commitments.

These changes are necessary, according to the platform, "to maintain the business for the long term while steadily building world-class products and services in select areas that add the most value for our clients."

Employees who were let go were given a reasonable severance package that included, among other things, separation pay covering 16 weeks of base pay, bonus pay, and four months of healthcare coverage such as counseling, immigration support, and career support.

In June of this year, Kraken declared that it would continue to hire over 500 people in various departments despite the market downturn. The company's hiring efforts stood in stark contrast to major layoff notices from major blockchain firms like Coinbase and BlockFi at the time.

Kraken stated earlier this year in support of its decision to continue expanding its workforce:

"We have not changed our hiring strategy, and we do not intend to lay off any employees. We have over 500 roles to fill for the rest of the year, and we believe that bear markets are excellent at separating the applicants chasing hype from the true believers in our mission."

Current layoffs, on the other hand, paint a different picture than the CEO's comments in June, when he used the opportunity to criticize so-called woke activists while talking about the company's decision to hire hundreds of new workers.

Do you think Kraken made the right decision in laying off 30% of its workforce? Drop your comments by sharing this article on social media.

Dec 1, 2022
Crypto News

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