DoorDash, Kraken to cut over 1,000 jobs each

SAN FRANCISCO, Nov. 30 (Xinhua) -- U.S. food delivery company DoorDash and Kraken, one of the largest cryptocurrency exchanges in the world, on Wednesday announced layoffs respectively.

In a blog post entitled "Kraken Takes Steps to Weather Crypto Winter," Kraken's co-founder and CEO Jesse Powell wrote that the company would lay off approximately 1,100 people, or 30 percent of its workforce worldwide, "to adapt to current market conditions."

"Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups," Powell said, adding that the cuts would reduce the company to the size a year ago.

DoorDash CEO Tony Xu announced in a separate blog post that the San Francisco company would cut 1,250 jobs while claiming that its business "remains strong and continues to grow."

Xu said that the company hired quickly during the pandemic as the demand for delivery increased, but, "We were not as rigorous as we should have been in managing our team growth ... As a result, operating expenses grew quickly."

"While our business continues to grow fast, given how quickly we hired, our operating expenses -- if left unabated -- would continue to outgrow our revenue," he said.