Kraken, one of the largest crypto exchanges in the world, is set to imminently lay off an additional 400 employees, sources told Crypto Intelligence News on Tuesday.
They warned that further job cuts could be on the horizon, as Kraken “still has employees that are surplus to requirements.”
The US-based crypto exchange didn’t respond to a request for comment by Crypto Intelligence News.
The planned job cuts will come amid the crypto market partially recovering, with Bitcoin rallying by around 21 percent in the last three months, according to CoinMarketCap data.
Ethereum, the world’s second-largest cryptocurrency, has seen its price increase by around 14.3 percent over the same period, trading at around $1,871 on 2 May.
In November, Kraken announced that it would be laying off 1,100 employees, which at the time accounted for around 30 percent of its total workforce.
CEO Jesse Powell explained in a blog post that the cuts were necessary to realign the company’s headcount with demand, which had taken a significant hit due to crypto prices tanking.
“We had to grow fast, more than tripling our workforce in order to provide those clients with the quality and service they expect of us,” Powell said.
“This reduction takes our team size back to where it was only 12 months ago.
“I remain extremely bullish on crypto and Kraken,” he added.
And in early February, Kraken announced more lay-offs, with it shuttering its Abu Dhabi office and consequently axing eight employees in the UAE capital.