Today, crypto exchange Kraken announced that it would lay off 1,100 employees. The ad was posted from Company blog postAnd he follows her Similar news from DoorDashShe also cut staff.
The news that Kraken will cut staff — and therefore costs — isn’t surprising, given the generally bleak macroeconomic climate and even worse climate in crypto-land. We’ve seen many other news stories before the Kraken news. Prominent bangs in and between web3 compLayoffs and other stock exchanges Including the American crypto giant CoinbaseEarlier in the year
Kraken’s 1,100 employees affected by the cuts represent 30% of its workforce. This makes Kraken more difficult to cut than other tech companies this year. Tech companies tend to reduce their staff by 10% to 20%.
The reason for the cuts was explained by the exchange, who stated that they had experienced “significantly lower trading volumes” and “fewer customer sign-ups” this past year. They also decided to reduce their hiring pace and avoid making “significant marketing commitments.” Kraken said that the continued “negative effects of financial markets” made the cuts necessary, despite other expenses being cut before they were implemented.
DoorDash cited “macro” causes that led to the cutbacks and made an implication that is relevant to today’s market.
In the tech market, layoffs have become a common occurrence this year. Many tech companies, including startups and tech giants have tried to reduce their costs in response a slower-than-expected growth rate or to reduce unprofitability as investor sentiment improves. Last year’s growth regardless of cost was the mantra that topped the market forecasts for better profit-loss data.
After a slight slowdown Tech layoffs have been back up. The cryptocurrency market has seen an even sharper contraction this year than the tech market overall. Kraken’s cuts are therefore not surprising, even though Kraken employs a larger proportion of its workforce than other companies.
Coinbase and Kraken don’t have to be the only ones cutting down on staff costs. OpenSea, another company which saw its valuation soar during the 2021-era startup boom and cryptocurrency boom, is also a great example of how staff costs can be cut. He had to cut staff as well.
Source link
[Denial of responsibility! reporterbyte.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – reporterbyte.com The content will be deleted within 24 hours.]
