Hundreds of employees face uncertainty as the crypto exchange giant continues aggressive staff cuts while preparing for public markets

Crypto exchange powerhouse Kraken has quietly severed ties with hundreds of employees across all departments over recent months, as the company aggressively restructures its operations in preparation for a potential public listing in the United States, according to two sources with knowledge of the situation.

This ongoing wave of layoffs follows the already substantial workforce reduction announced in October last year, when Kraken cut approximately 400 staff members—roughly 15% of its entire workforce. That earlier reduction coincided with Silicon Valley investor and Kraken board member Arjun Sethi stepping into a co-CEO role alongside David Ripley, who had assumed leadership after founder Jesse Powell stepped down in 2023.

One insider familiar with the company’s operations revealed that the staff reductions have continued at a concerning pace since Sethi’s appointment. “Hundreds more have gone,” the source disclosed, describing a “rolling program of firings” that has extended well beyond the previously announced 15% reduction from late last year.

“They’re culling aggressively across all functions, and it’s a constant and ongoing thing. It’s about improving Kraken’s EBITA [earnings before interest, tax and amortization],” the same person added.

When the leadership structure shifted to a dual-CEO model last year, Sethi and Ripley publicly acknowledged in a blog post that Kraken needed to eliminate “organizational layers” that had accumulated over time and transform the business into a “leaner and faster” operation.

The layoffs come during a period when multiple crypto firms are positioning themselves for initial public offerings (IPOs), either later this year or in early 2025. Parallel to its workforce reductions, Kraken has been actively pursuing revenue growth through strategic acquisitions, including the derivatives platform Ninja Trader, and recently expanded its offerings to include stock trading.

In response to inquiries about the staffing changes, a Kraken representative stated: “Kraken’s business is thriving. We’re launching more new products than ever before, driving strong revenue growth, and rapidly expanding across our entire product portfolio — including through the agreement to acquire NinjaTrader, announced earlier this year.”

The spokesperson continued, “At the same time, we continuously evaluate our workforce to ensure it aligns with our strategic priorities. We’re approaching this with discipline and intention, making the difficult decision to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business.”

Despite the official emphasis on growth and strategic realignment, the extensive layoffs have created uncertainty among remaining staff as the company continues its transition toward becoming a publicly traded entity.