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U.S. crypto exchange Kraken to lay off 30% of its workforce, cites ‘market conditions’

U.S.-based crypto exchange Kraken will lay off 30% of its global workforce, or approximately 1,100 people, to “adapt to current market conditions,” according to a company blog post on Wednesday. 

See related article: Kraken pays over US$360K to US Treasury to settle Iran sanctions allegations

Fast facts

  • “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,” the company said in the post. “Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand.”

  • The cuts bring the company’s total workforce to the same size it was 12 months ago, Kraken said in the statement.

  • Kraken’s move follows the collapse of the Bahamas-based crypto exchange earlier this month, which has driven crypto markets lower and threatens companies with exposure to FTX, with one, crypto lender BlockFi Inc., filing for bankruptcy this week.

  • The total cryptocurrency market capitalization has fallen 16% since FTX’s collapse, while Bitcoin is trading down 18% at US$17,128.

  • FTX’s collapse only deepened this year’s downturn in the crypto market, with Bitcoin’s price slumping 63% since the end of 2021.

  • Another U.S.-based exchange, Coinbase Global Inc., cut 60 positions in the past month, after shedding 18% of its workforce in June.

See related article: AAX crypto exchange at risk of capital deficit, says market vulnerable from FTX collapse

Read More: U.S. crypto exchange Kraken to lay off 30% of its workforce, cites ‘market conditions’

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