Kraken MASSACRE! Hundreds Fired Before IPO?!

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Kraken Sheds ‘Hundreds’ of Jobs to Streamline Business Ahead of IPO, Sources Say

What to know:

  • Kraken has laid off “hundreds” of staff 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., people familiar with the matter told CoinDesk.
  • At the end of October last year, Kraken laid off 400 staff, or about 15% of its workforce, when Silicon Valley investor and Kraken board member Arjun Sethi became co-CEO.

Over the past few months, Kraken, a significant player in the crypto exchange market, has let go of numerous employees across various departments of their company. This move is part of their ongoing efforts to optimize operations, as they prepare for a possible public offering in the United States. This information comes from two sources who are knowledgeable about the situation.

At the close of October in the previous year, it was announced that Kraken had let go approximately 15% of its employees, which amounted to 400 staff members. This decision came at a time when Arjun Sethi, a Silicon Valley investor and board member at Kraken, took on the role of co-CEO alongside David Ripley. David assumed leadership duties following the departure of former CEO Jesse Powell in 2023.

Ever since Sethi took on the role as co-CEO, it’s been reported that “a significant number of employees have left,” according to someone with knowledge of the circumstances. This person also noted a continual process of terminations in addition to the 15% workforce reduction that occurred at the end of last year.

The individual stated that they are making significant cuts in all areas of the company, and this is an ongoing process focused on enhancing Kraken’s earnings before interest, taxes, and amortization (EBITA). In simpler terms, they are implementing aggressive cost-cutting measures to boost Kraken’s profitability.

Last year when the CEO position was divided, Sethi and Ripley stated in a blog post that it was necessary to eliminate excess “structural tiers” that had built up within Kraken, aiming to create a more streamlined and swift organization.

Multiple cryptocurrency companies are preparing their operations to go public through an Initial Public Offering (IPO) either later this year or in the beginning of next year. Kraken, among others, is boosting its income by purchasing firms like derivatives platform Ninja Trader and lately announcing the incorporation of stock trading services.

A Kraken spokesperson shared with CoinDesk that their business is flourishing. They’re introducing an unprecedented number of new products, leading to robust revenue expansion, and quickly expanding the entire range of their product lineup — even with the recent agreement to purchase NinjaTrader, as previously announced this year.

Simultaneously, we regularly assess our team structure to match our strategic goals. We’re tackling this task with focus and purpose, sometimes needing to let go of specific positions and merge teams where overlaps occur, all while expanding our workforce in crucial aspects of our operations. This is the message conveyed by the Kraken representative.

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2025-04-17 22:42