Crypto Exchange Kraken Cutting Down 30% Of Workforce

Big tech companies started laying off their employees. Finally, one of the popular crypto exchanges Kraken has to make the tough decision to slash 30% of its workforce, which is a total of 1100 employees. Macroeconomic situations make it different to survive and move on.

Kraken CEO steps back from the statement that he made just six months ago. According to the announcement, they did not make any adjustments to the hiring plan. Moreover, the company had more than 500 roles in different departments that needed to fill. So they did not have any intention to cut their workforce back then.

A bear market is a time for development and innovation to move forward. This is also a time when many companies may go out of business. Crypto winter hits hard. It's just one year after the last bull run.

The central bank keeps raising interest rates and it gets difficult for every company to face challenges. In order to sustain the business for the long term and make progress, the crypto exchange Kraken decides to reduce the cost and let go of its 1100 employees. All employees who are laid off will get severance packages and other benefits.

Trading volume is usually high in a bull market. Crypto exchanges and other crypto-based platforms hire many people to expand their operations. When the company makes profits, and there is a huge potential to grow fast, every company takes advantage of the situation to make their move.

Everything goes well as long as the crypto market is on an uptrend. But when the bull run is over, nothing can stop the situation to turn in a different direction. It does not only hit the crypto industry but also other industries.

Like many other cryptocurrency exchanges, Kraken's trading volume is low at this time. There is no alternative to adjusting to this situation. If any business fails to make the right decision in time, there is a high chance it will not survive and thrive in the long run.

All employees who got laid off will have a hard time. Even the company that has not cut down their workforce yet, they stop hiring new employees. So it will be way difficult to get a new job. Hope they have emergency funds and other sources of income that will support them at this time.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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