Crypto Bank Kraken Cuts Nearly a Third of Staff as Market Cools

Yet another major San Francisco-based tech company announced sweeping layoffs on Wednesday, this time affecting employees at Kraken, one of the original cryptocurrency exchanges. 

The company said it plans to cut around 1,100 employees, or around 30%, of its workforce, and that it notified all affected staff Wednesday morning.

The announcement comes just two days after the company agreed to settle with the U.S. Treasury Department over Iranian sanctions violations to the tune of $360,000. 

But it’s just the latest in a long string of technology companies in the San Francisco Bay Area that have slashed staff, anticipating unfavorable market conditions to come. 

The company’s co-founder and CEO Jesse Powell wrote in a statement that the layoffs will bring the company back to its staffing level a year ago, before a recent crypto boom and its subsequent crash.

“Unfortunately, negative influences on the financial markets have continued and we have exhausted preferable options for bringing costs in line with demand,” Powell wrote.

Laid-off employees will receive 16 weeks of pay and four months of health care, plus a larger window to vest stock options and receive bonuses. The company says it will also help those who need immigration and career support.