Kraken Lays Off Hundreds Ahead of Planned IPO
Kraken, a leading cryptocurrency exchange based in San Francisco, has laid off approximately 15% of its workforce—around 400 employees—as part of a strategic restructuring ahead of a planned initial public offering (IPO). This move comes under the leadership of newly appointed co-CEO Arjun Sethi, who joins Dave Ripley in steering the company. The layoffs aim to streamline operations, reduce costs, and enhance earnings before interest, taxes, and amortization (EBITA), positioning Kraken for growth in a competitive market.
The restructuring also involved the departure of key executives, including Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar. Kraken's leadership emphasized the need to become "leaner and faster," focusing on reducing managerial layers and refocusing on core goals. This organizational shift is intended to improve agility and responsiveness to market changes, aligning with the company's ambition to become the world's largest crypto platform.
Despite the workforce reduction, Kraken continues to expand its services, recently launching commission-free trading for over 11,000 U.S.-listed stocks and ETFs. Additionally, the company announced a $1.5 billion acquisition of retail futures trading platform NinjaTrader, aiming to diversify asset offerings and increase its user base. These strategic moves reflect Kraken's efforts to integrate traditional financial markets and prepare for a potential IPO, which is being considered for as early as the first quarter of 2026.
