Kraken Undergoes Significant Job Cuts Ahead of IPO

In recent months, cryptocurrency exchange Kraken has laid off “hundreds of employees.” The business optimization, amid a potential listing in the US, affected all company divisions, reports CoinDesk.

In late October 2024, Kraken reduced its workforce by 400 people, or about 15% of its staff.

This followed the appointment of venture investor Arjun Sethi as co-CEO, who took the helm alongside David Ripley. Ripley became CEO in mid-2023, succeeding the exchange’s co-founder Jesse Powell.

Taking charge, Sethi and Ripley promised to eliminate the “organizational layers” that had accumulated at Kraken to make the business “more compact and agile.”

Since then, a permanent layoff program has affected hundreds of people, a knowledgeable source told CoinDesk.

“They are aggressively trimming across all departments, and it is a constant and ongoing process. It’s about improving Kraken’s EBITDA [earnings before interest, taxes, depreciation, and amortization],” the source emphasized.

Journalists linked this to the company’s plans for an initial public offering (IPO) around the first quarter of 2026.

“Kraken’s business is thriving. We are launching more new products than ever before, ensuring significant revenue growth and rapidly expanding our portfolio of offerings, including through the agreement to acquire NinjaTrader this year,” a company representative stated.

The representative confirmed that the company continually assesses the alignment of its workforce with strategic priorities:

“We make tough decisions to eliminate certain positions and consolidate teams where there are redundancies, while continuing to hire in key areas of the business.”

Back in March, the US Securities and Exchange Commission withdrew its lawsuit against Kraken.