Bakkt lays off 15% of exempt employee base amid crypto downturn, CEO says

Digital asset marketplace Bakkt ( NYSE: BKKT ) is cutting 15% of its exempt employee base in an effort to better manage its expenses as the cryptocurrency downturn looms. Still, BKKT stock gained 3.5% in late morning trading. The job cuts come as "we anticipate the current crypto downturn may prolong partner engagement and activation timelines," Bakkt CEO Gavin Michael wrote in recent a note to employees. Nevertheless, Bakkt ( BKKT ) disclosed last month it has no exposure to Sam Bankman-Fried's crypto empire, which filed for bankruptcy on November 11, as well as some of the firms that suffered from the FTX-Alameda collapse. "Given these delays, we’ve been reducing expenses and ruthlessly prioritizing how we allocate resources for some time," Michael said. The layoffs also come after the company announced its acquisition of Apex Crypto , which is expected to close in the first half of 2023. In the meantime, Bakkt ( BKKT ) is focusing on "expanding our reach across additional client verticals and advancing our crypto product suite," the BKKT chief added. Seeking Alpha contributor Leo Imasuen contended that a hit to retail and institutional crypto adoption will hurt Bakkt's near-term revenue growth .