Kraken slashing 1,100 jobs as crypto turmoil spreads

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Cryptocurrency exchange Kraken said Wednesday it will cut its global workforce by 30%, or about 1,100 employees, citing tough market conditions that have dampened demand for digital assets this year.

Higher interest rates And Concerns about an economic downturn The recent bankruptcy of FTX added to the uncertainty and sent cryptocurrencies spiraling as investors pulled away from riskier assets.

“Since the beginning of the year, macroeconomic and geopolitical factors have weighed on financial markets,” the firm said.

Kraken said it had seen a drop in trading volumes, fewer client signings and layoffs would take its total headcount from 12 months ago.

Earlier this month, crypto exchange Coinbase Global cut jobs in its recruiting and corporate onboarding teams.

Kraken, which had previously cut back on hiring and scaled back marketing spending, said it was forced to cut jobs as it exhausted other measures to bring costs in line with current demand.

Meanwhile, the The explosion of crypto exchange FTXThe highest casualty of the year’s market turmoil continues to ripple across the industry. BlockFi files for bankruptcy Earlier this week.

The meltdown has dragged the price of the biggest cryptocurrency, bitcoin, to a two-year low.

Global regulators are circling crypto companies.


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