Kraken Lays Off Hundreds Amid U.S. IPO Preparations

Crypto exchange giant Kraken has laid off hundreds of employees across all areas of the business over the past several months. This move is part of the firm's efforts to streamline its operations ahead of a potential public listing in the U.S. According to sources familiar with the situation, the layoffs are part of a rolling program of firings that began late last year when the company laid off 400 staff, or about 15% of its workforce. This was around the time when Silicon Valley investor and Kraken board member Arjun Sethi became co-CEO alongside David Ripley, following the departure of former CEO Jesse Powell in 2023.

Since Sethi took on the co-CEO role, additional layoffs have continued, with sources indicating that "hundreds more have gone." The ongoing layoffs are described as aggressive and constant, aimed at improving Kraken’s EBITA (earnings before interest, tax, and amortization). When the CEO role was split last year, Sethi and Ripley stated in a blog post that there was a need to shed "organizational layers" that had accumulated in Kraken, making the business "leaner and faster."

Several crypto firms are currently preparing for initial public offerings (IPOs) this year or early next year. Kraken has been pushing for increased revenues through various means, including the acquisition of businesses such as the derivatives platform Ninja Trader. The company has also recently announced the addition of stock trading to its services. A Kraken representative stated that the company's business is thriving, with strong revenue growth and the launch of new products. The representative also mentioned that the company continuously evaluates its workforce to ensure it aligns with its strategic priorities, making difficult decisions to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business.