The crypto and non-fungible token-backed projects continue suffering from the recent FTX debacle. Kraken is a recent example, slashing more than 30% of its staff to survive the wrath of the ongoing bear market.
On November 30, Kraken, a crypto exchange and a digital collectibles marketplace, announced that it has agonizingly made one of the ‘toughest decisions’ in its crypto market life since its inception in 2011.
Kraken Lays Off 30% Of Its Staff
Unfortunately, the NFT marketplace has slashed its global workforce to survive the ongoing general crypto market downturn. Kraken has laid down 1,100 employees, equivalent to approximately 30% of its workforce.
In a recent statement, Jesse Powell, the co-founder of Kraken, remorsefully explained that the NFT marketplace tripled its workforce earlier this year due to the fast-growing crypto ecosystem.
Nonetheless, following the ongoing general market meltdown that deteriorated recently after the collapse of the FTX crypto exchange, Kraken has to pull back the size of the company to where it was 12 months ago.
In a blog post, the top executive further explained that the crypto and NFT marketplace had recently recorded lower trading volumes and fewer client sign-ups amid the current turbulent market conditions.
Rough day at @krakenfx. Headcount rolled back 12 mos. Macro was already tough and we held out but recent industry woes diminished near-term optimism about a crypto rebound. Better positioned now. Glad we were able to take good care of our former colleagues. Been a privilege. ♂️ https://t.co/xfwShapS2N
— Jesse Powell (@jespow) November 30, 2022
According to Kraken, reducing the workforce is necessary to prevent the business from sinking further and enable it to continue providing services in areas that add value for its customers.
But interestingly, Kraken has prepared a better let-go package for all employees impacted by the recent layoff. The crypto exchange will offer them separation pay covering 16 weeks of basic pay and performance bonuses for their time in the company.
Other benefits will include four months of healthcare, covering counseling, immigration support, and career support, among other benefits. Kraken has appeared unique compared to other crypto firms, which recently laid off staff without prior notice or accompaniment rebates.
More NFT Firms Suffer Amid The Bear Market
In recent months, several NFT projects have suffered an ongoing crypto meltdown. Last week, Metaplex, an NFT incubation studio built on the Solana blockchain, confirmed suffering the bear market to the point of laying off some of its staff.
Earlier this week, Candy Digital, an entertainment NFT startup allowing fans to purchase and sell NFTs, announced laying off some of its staff, citing poor performance during the ongoing bear market.
Related
- FTX Trauma Is Not Yet Over – Another NFT Firm Has Just Cut 30% Of Its Staff
- The NFT Winter Pushes Dapper Labs To Lay Off 22% Of Its Staff
- FTX Contagion Pushes Metaplex To Lay Off Some Of Its Staff
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