Cryptocurrency exchange Kraken has reportedly laid off “hundreds” of employees across various departments in recent months as it streamlines operations ahead of a potential initial public offering (IPO) in the United States, CoinDesk reported, based on the sources familiar with the matter..
This latest round of job cuts follows a previous reduction of 400 staff members, representing approximately 15% of its workforce, in late October of last year. That earlier layoff coincided with Silicon Valley investor and Kraken board member Arjun Sethi becoming co-CEO alongside David Ripley, who took over from former CEO Jesse Powell in 2023.
According to a source, the recent job reductions have been implemented “aggressively across all functions” in a continuous effort to improve Kraken’s earnings before interest, tax, and amortization (EBITA).
When the co-CEO structure was introduced last year, Sethi and Ripley stated in a blog post the necessity to eliminate “organizational layers” to create a “leaner and faster” business.
Kraken’s efforts to optimize its operations come as several cryptocurrency companies are reportedly preparing for potential IPOs this year or in early 2026. The exchange has also been actively pursuing revenue growth through acquisitions, such as the derivatives platform Ninja Trader, and recently announced its expansion into stock trading.
A Kraken spokesperson acknowledged the workforce adjustments, stating that the company is “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 also emphasized that “Kraken’s business is thriving” with strong revenue growth and the launch of new products.
