Jesse Powell, CEO of cryptocurrency exchange Kraken, sits for a photograph at the corporate’s San Francisco office in 2014.
David Paul Morris | Bloomberg via Getty Images
Kraken, certainly one of the world’s largest crypto exchanges, is shedding about 30% of its headcount, or 1,100 people, “with a purpose to adapt to current market conditions,” co-founder and CEO Jesse Powell said Wednesday.
Powell wrote in a blog post that slowing growth, prompted by “macroeconomic and geopolitical aspects,” had muted customer demand, lowered trading volumes and cut sign-ups.
“We needed to grow fast, greater than tripling our workforce with a purpose to provide those clients with the standard and repair they expect of us,” Powell said. “This reduction takes our team size back to where it was only 12 months ago.”
“I remain extremely bullish on crypto and Kraken,” Powell added.
Crypto exchanges have been buffeted by withdrawals and regulatory scrutiny after the implosion of FTX. Sam Bankman-Fried’s crypto empire filed for bankruptcy on Nov. 28 and has shed several hundred employees within the restructuring process.
Barry Silbert’s Digital Currency Group laid off about 13% of its staff in November. Crypto.com laid off 2,000 employees in October.
Kraken said it is going to offer 16 weeks of compensation as severance and can extend the affected employees’ vesting window.
Correction: This story has been updated to reflect that Kraken announced it’s shedding 1,100 employees. A previous headline gave an incorrect number.