Kraken provides support for exiting employees as it lays off 1100 staff members

Kraken, the US-based cryptocurrency exchange and bank, has joined the growing list of companies that have reduced the volume of their workforce this year. However, the exchange has provided a detailed plan to support the departing employees as they transition from the company.

Numerous blockchain companies, including Coinbase and BlockFi, have cut back on staff numbers for several reasons, including the market’s irrepressible bearish fall. Earlier this year, Kraken declared that it would ensure continuity in hiring 500 new employees while other cryptocurrency companies reduced their workforce.

“We believe bear markets are fantastic at weeding out the applicants chasing hype from the true believers in our mission,” the firm mentioned. With the persistent crypto bearish woe, the exchange has shifted grounds and reversed its decision to pursue its previously-announced goal. 

Kraken also mentioned that market volatility has led to lower trading rates and reduced signups. As a result, downsizing the workforce to what it was 12 months ago was the only best option left.

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Kraken CEO: Employee Layoffs needed for long-term preservation 

On Wednesday, Kraken said it is laying off 30% of its global staff – around 1,100 people – in response to the crypto market downturn.

“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups,” Kraken said in a blog post.

“We responded by slowing hiring efforts and avoiding large marketing commitments. Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand.”

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According to CEO and co-founder Jesse Powell, Kraken tried every means possible to avoid pursuing the option to downsize staff, but nothing could be done to prevent it. In the statement released by the exchange, the employees’ layoffs will ensure that the company stays running and keep on with the business for as long as possible. 

The firm highlighted that it would keep on building world-class products and services in the most valuable areas for its clients. Nonetheless, the company mentioned that every employee was laid off with deserving packages, which include 16-week base pay, 4-month health coverage, access to counselling services and a bonus for eligible employees.

Additionally, sacked employees on a company-sponsored visa would enjoy visa and immigration support. The exchange will ensure leaving employees to carry out their vested stock options and offer networking opportunities to aid in a job search.

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A Period of Layoffs

In 2022, various blockchain and crypto companies have adjusted their staff numbers to stay afloat. In November, Lemon Capital shed 38% of its workforce, while Unchained Capital let go of 638 people (amounting to 38%). Coinbase, Mythical Games, Dapper Labs, BitMEX, and Galaxy Digital also laid off some staff.

Outside of the blockchain and crypto industry, Meta slashed 11000 jobs while Stripe terminated 1000 jobs. The coming years will see a drastic change in the industry as recruitment is set to be high.

Thus, employees who did not escape the brunt of the current layoff spell should try upskilling while they search for new offers. By upskilling, they stand a chance of getting a better job in the coming days. Meanwhile, employees working with companies with no decision to downsize the workforce should be on the lookout because the coming days before the year ends might arrive with shocking news.

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