Kraken Cuts 15% Workforce Ahead of U.S. IPO

Cryptocurrency exchange Kraken has initiated a significant restructuring effort in preparation for a potential U.S. listing. Over the past few months, the company has laid off hundreds of employees across various business areas. This move is part of a broader strategy to streamline operations and enhance financial performance ahead of its anticipated initial public offering (IPO).

According to sources, the layoffs began in earnest after Arjun Sethi took on the role of co-CEO. The company had already reduced its workforce by 15% at the end of last year, and the recent layoffs are part of an ongoing effort to further cut costs. The source emphasized that the layoffs are not limited to any specific department but are occurring across all functional areas. The primary goal of these reductions is to improve Kraken's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

This strategic move by Kraken reflects a common practice among companies preparing for an IPO. By reducing operational costs and improving financial metrics, Kraken aims to present a stronger and more attractive profile to potential investors. The layoffs are expected to continue as the company works towards achieving its financial targets and positioning itself for a successful public listing.