The exchange let go of 1,100 employees. The announcement came from a post on the company's website.
The news that Kraken is cutting staff and costs is unsurprising given the gloomy macroeconomic climate. Several high-profile implosions in and amongst web3 companies, as well as layoffs from other exchanges, have taken place prior to the announcement of the Kraken news.
The reductions that we have seen from tech companies this year have ranged from 10% to 20%, but the 1,100 affected employees represent 30% of its staff.
The exchange said it made the cuts because of lower trading volumes and less client sign-ups. Despite attempts to cut other expenses before laying off staff, the cuts were necessary due to the negative influences on the financial markets.
The market it is facing today is related to the macro impacts that led to it making cuts.
There have been layoffs in the technology market. Tech companies have looked to trim their costs in response to slower than expected growth or the need to reduce unprofitability as investor sentiment has evolved.
Tech layoffs have picked up again. Even if they constitute a greater portion of the company's overall workforce than we have seen amongst other companies, the cuts are not a surprise due to the contraction in thecryptocurrencies market.
There are other companies that reduce their personnel costs. OpenSea, a company that saw its valuation soar during the tech boom of the 21st century, had to cut its workforce.
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