Crypto exchange giant Kraken has laid off hundreds of staffers across all areas of the business over the past several months, as the firm continues to streamline its operations ahead of a potential public listing in the U.S., according to two people familiar with the situation.
Kraken was reported to have laid off 400 staff, or about 15% of its workforce, at the end of October last year, when Silicon Valley investor and Kraken board member Arjun Sethi became co-CEO alongside David Ripley, who took the reins when former CEO Jesse Powell stepped down in 2023.
Since Sethi became co-CEO, “hundreds more have gone,” said a person familiar with the situation, who pointed to a rolling program of firings over and above the 15% cut late last year.
“They’re culling aggressively across all functions, and it’s a constant and ongoing thing. It’s about improving Kraken’s EBITA [earnings before interest, tax and amortization],” the person said.
When the CEO role was split last year, Sethi and Ripley said in a blog post that there was a need to shed “organizational layers” that had accumulated in Kraken, and make the business “leaner and faster.”
Several crypto firms are currently getting their houses in order to launch an initial public offering (IPO) this year or early next year. Kraken has also been pushing for increased revenues by acquiring businesses such as derivatives platform Ninja Trader, for instance, and recently announcing the addition of stock trading.
“Kraken’s business is thriving. We’re launching more new products than ever before, driving strong revenue growth, and rapidly expanding across our entire product portfolio — including through the agreement to acquire NinjaTrader, announced earlier this year,” a Kraken representative told CoinDesk.
“At the same time, we continuously evaluate our workforce to ensure it aligns with our strategic priorities. We’re approaching this with discipline and intention, making the difficult decision to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business,” the Kraken spokesperson said.