As a seasoned researcher with years of experience tracking the volatile crypto market, I find these recent staffing decisions by Kraken and other prominent crypto firms to be both intriguing and concerning. The crypto landscape is notoriously unpredictable, and the need for organizational agility is paramount. Yet, repeated layoffs suggest a broader issue at play – one that might be indicative of an industry-wide struggle to find its footing.
According to inside sources and as reported by a New York Times journalist, it appears that Kraken recently let go approximately 15% of its employees.
This week, I find myself part of the workforce reduction at Kraken exchange, joining other crypto pioneers Consensys and DYDX in this adjustment. Based in San Francisco, we’ve brought on board Tribe Capital co-founder Arjun Sethi as our new co-CEO, and have made “organizational discipline decisions” aimed at addressing current challenges.
Based on Mike Isaac’s initial report for The New York Times, it is unclear which positions will be affected by the layoffs at Kraken. However, their press statement and social media conversations seem to indicate that the majority of the job cuts are targeting upper-level management and C-suite staff. According to a company blog post, some internal structures have stifled innovation among team leaders within the organization.
To ensure that our leading contributors concentrate on construction instead of administration, we should empower our leaders to create exceptional products, use data to guide choices beneficial for our clients, and instill a sense of responsibility for outcomes in our engineering, product development, and design teams.
Kraken statement
In a separate development, Kraken joined the ranks of three U.S.-based cryptocurrency companies reducing their workforce, while ConsenSys, known for creating MetaMask and contributing to Ethereum (ETH) infrastructure, reduced its staff by 20%. The CEO, Joe Lubin, attributed this move to increased regulatory oversight and broader economic factors.
35% of the workforce at DYDX, a decentralized platform for trading perception, were let go about two weeks after CEO Antonio Juliano returned to the company. This reduction in staff affected key team members as well.
As an analyst, I can share that in response to the cryptocurrency market’s downturn towards the end of 2022, Kraken restructured its organizational setup. This decision resulted in a reduction of approximately 30% of our workforce, which equates to around 1,100 employees. This measure was taken amidst the unpredictability brought about by Bitcoin‘s drop and high-profile bankruptcies like FTX.
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2024-10-30 21:57