Cryptocurrency exchange Kraken is making major cuts to its global workforce, thanks to a sharp drop in investors’ demand for digital currencies.
Kraken on Wednesday announced it’s laying off about 1,100 employees, bringing its workforce to around the same level it was one year ago. The company laid blame on unfavourable market conditions and rising interest rates, which are causing a distaste for riskier assets. “Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets,” the exchange said, as cited by Reuters.
The company has also seen a substantial decline in trading volumes with less new clients signing up, while a recent cascade of crypto bankruptcies are heightening investors’ concerns over the long-run viability of the space. The ongoing implosion of FTX has nearly brought the crypto industry to a screeching halt, rapidly draining liquidity from companies exposed to the debacle.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.