Cryptocurrency exchange Kraken announced job cuts today, affecting 30% of their workforce, or about 1,100 employees. In a blog postKraken CEO Jesse Powell said the company made the decision to help them weather the “crypto winter.”
Kraken, a platform that allows users to buy, sell and trade cryptocurrencies, announced plans to hire 500 new employees in Junebut only if their beliefs align with the company’s goals “first crypto culture,” that obviously means not calling what others say “toxic, hateful, racist, x-phobic.” But now, Kraken is reducing spending after a period of rapid growth, citing “significantly lower transaction volumes and fewer registered customers.”
Powell said that while Kraken tried to mitigate uncertain economic conditions by slowing hiring and “avoiding major marketing commitments,” it ultimately ran out of ways to save money. Employees who have been laid off will receive 16 weeks of paid leave along with 4 months of continued health care benefits. Kraken will also expand support for company-sponsored visa holders and give employees access to career networking tools.
“I believe the steps we are taking today will ensure we can continue to deliver on our mission that the world needs more than ever,” Powell wrote. “I remain extremely bullish on crypto and Kraken.”