Jesse Powell, CEO of cryptocurrency exchange Kraken, poses for a photo at the company's San Francisco office in 2014.
David Paul Morris | Bloomberg via Getty Images
Kraken, one of the world's largest cryptocurrency exchanges, is laying off about 30% of its staff, or 1,100 people, "to adjust to current market conditions," co-founder and chief executive officer Jesse Powell said Wednesday.
Powell wrote in a blog post that slowing growth, caused by "macroeconomic and geopolitical factors", had muted customer demand, reduced trading volumes, and reduced subscriptions.
"We had to grow fast, more than triple our workforce to provide those customers with the quality and service they expect from us," Powell said. "This reduction brings our team size to where it was just 12 months ago."
โI remain extremely bullish on cryptocurrencies and Kraken,โ Powell added.
Cryptocurrency exchanges have been hit by withdrawals and regulatory scrutiny after the FTX implosion. Sam Bankman-Fried's crypto empire filed for bankruptcy on November 28 and has laid off several hundred employees in the restructuring process.
Barry Silbert's digital currency group laid off around 13% of its staff in November. crypto.com laid off 2,000 employees in October.
Kraken said it will offer 16 weeks of severance pay and extend the tenure window for affected employees.
Correction: This story has been updated to reflect that Kraken announced that it will lay off 1,100 workers. A previous owner gave an incorrect number.
