Sources Indicate Kraken Cuts ‘Hundreds’ of Jobs to Optimize Operations Before IPO
Crypto exchange giant Kraken has laid off hundreds of employees across various departments in recent months as the company streamlines its operations in anticipation of a potential public listing in the U.S., according to sources familiar with the matter. At the end of October last year, Kraken reportedly reduced its staff by 400, representing about 15% of its workforce. This took place when Silicon Valley investor and Kraken board member Arjun Sethi became co-CEO alongside David Ripley, who stepped in when former CEO Jesse Powell resigned in 2023.
Since Sethi became co-CEO, “hundreds more have gone,” according to a source who mentioned that there has been an ongoing program of layoffs in addition to the initial 15% cut 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 source stated.
When the CEO position was divided last year, Sethi and Ripley noted in a blog post the necessity of removing “organizational layers” that had built up at Kraken to make the business “leaner and faster.” Several crypto firms are currently preparing for initial public offerings (IPOs) this year or early next year. Kraken is also focusing on increasing revenues through acquisitions, such as its purchase of the derivatives platform NinjaTrader, and recently announced 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 shared with Hotnchill. “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 spokesperson added.
