Kraken Cuts 15% of Workforce as Exchange Gears Up for IPO
In preparation for its U.S. IPO, Kraken lays off hundreds of employees across various business units as part of ongoing organizational streamlining.
Cryptocurrency exchange Kraken has laid off approximately 400 employees, which accounts for 15% of its workforce. This strategic decision aims to streamline operations as the company prepares for a potential initial public offering (IPO) in the U.S. Reports indicate that the staff reductions began in October 2024 and have continued into 2025.
The restructuring effort also focuses on improving efficiency and enhancing EBITDA performance. the exchange intends to cut costs and consolidate overlapping roles across various business units in preparation for its IPO.
Senior Leadership Changes and Strategic Repositioning
The recent layoffs have affected several departments, including executive leadership. Both Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar have recently left the company. In a strategic move, the firm has appointed Arjun Sethi, co-founder of Tribe Capital, as co-CEO alongside Dave Ripley. Sethi brings nearly four years of board experience with Kraken, signaling a focus on innovation and growth.
Kraken aims to empower its product, engineering, and design teams by streamlining management layers that were established during periods of rapid expansion, particularly when revenue growth was strong.
Kraken Aims at IPO and Market Expansion
In addition to restructuring internally, Kraken has made significant progress in the financial sector. The company recently acquired NinjaTrader, a retail futures trading platform, in a deal worth $1.5 billion. The acquisition is part of it’s strategy to expand beyond cryptocurrency and into traditional financial markets.
Moreover, the exchange introduced commission-free trading for stocks and ETFs across the U.S., which demonstrates its ambition to compete with major retail brokers.
In light of recent developments, Kraken is proudly celebrating a significant legal victory with the official dismissal of a lawsuit filed against the company by the U.S. Securities and Exchange Commission (SEC). This ruling eliminates a significant regulatory hurdle, facilitating a smoother process for Kraken as it prepares to go public.
While the recent job cuts represent a challenging time for many employees, Kraken remains firmly committed to refining its business model. The company aims to strengthen its financial position in anticipation of its upcoming IPO.
