On Wednesday morning, US crypto exchange Kraken announced to reduce the staffing of 1,100 employees or 30% of its global working hands to ‘adapt to the current market condition.’
Kraken’s mentioned. “We are extremely grateful for the contributions of those impacted by today’s announcement and we’ll do our best to help them transition to their next opportunity.”
The Concept of the action —
Kraken is Known as the world’s third-largest crypto exchange. It is a United States-based company founded by Jesse Powell in 2011. Kraken is also known to be the first exchange to be listed on Bloomberg, and according to the data of midsummer 2022, it is valued at USD 10.8.
According to Kraken’s post, it has mentioned the reason behind reducing its staffing the company is.
At the start of the crypto industry, millions of new clients and users entered the crypto industry, most of them showing their trust towards Kraken and Kraken to provide quality and fast work; Kraken increased their staffing thrice in numbers to provide satisfactory service to the clients.
After reducing staffing, it will take the company size as it was before 12 months as it was.
As per market conditions, macroeconomics and geopolitical factors have more weightage than financial factors. The outcome of this condition is the trading is decreased in volume compared to the new clients hired.
The action of reducing staffing is not taken immediately; it has started too early than this by slowing the new hiring and slowing down the market commitment.
The report from Kraken stated, “As one of the longest running global crypto exchanges, founded in 2011, we have successfully navigated many market cycles and our strategy has always included thoughtful cost management and spending.”
Kraken moved to expand business in the long term while building world-class products in the selected areas, adding the most value to the clients.
As the company made the strict decision for the betterment of the company, Kraken’s post has added that it will ensure that the departing employees get the best opportunity to work after leaving the firm.
The company offered services to the staff who are not going to be part of the company from now on, such as Separation pay, Performance bonus, Benefits, Extension of exercise window, Immigration support and Outplacement support.
Kraken has done the appreciable work of looking after their ex-employees by providing such services. Still, according to the whole situation, the question arrives whether it is enough for the employees who have contributed their time and efforts to the company.