Kraken, a prominent cryptocurrency exchange, revealed on Oct. 30 a series of layoffs described as “organizational changes” aimed at streamlining operations and refocusing its mission. Alongside these changes, Kraken appointed Arjun Sethi, co-founder of the venture capital fund Tribe Capital, as its new co-CEO. The exchange expressed its gratitude to those affected by the layoffs, acknowledging the profound impact on their lives and pledging support during the transition. According to Mike Isaac, a tech journalist at the New York Times, sources familiar with the matter indicated that the layoffs affected 15% of Kraken’s workforce.
This marks Kraken’s second round of layoffs in recent times, following a previous reduction in November 2022, when the exchange laid off 1,100 employees, accounting for 30% of its workforce. The latest structural changes are intended to reduce bureaucracy, eliminate managerial layers, and renew the emphasis on product innovation, data-driven decision-making, and accountability across its engineering, product, and design teams.
Kraken elaborated that its journey beyond $1 billion in revenue had unintentionally created management silos, with departments operating independently under separate profit and loss frameworks. The exchange highlighted the necessity to reduce these organizational layers, ensuring that top contributors focus on building and innovating rather than managing. The reshaped structure aims to be leaner, faster, and more agile, enabling client-centered decisions and empowering leaders to enhance the company’s global crypto offerings.
Despite the layoffs, Kraken remains committed to driving global crypto adoption, positioning itself as a bridge between traditional finance and the digital world. The restructuring comes shortly after the exchange announced its Ethereum-based layer-2 blockchain, Ink, which will utilize Optimism’s infrastructure technology following a 25 million OP token deal with the Optimism Foundation.
This week has seen a wave of layoffs among crypto companies, with blockchain services provider Consensys reducing its workforce by 20% on Oct. 29, citing restructuring efforts. Additionally, dYdX CEO Antonio Juliano announced that the decentralized exchange would reduce its workforce by 35% as part of its decision to “go back to startup mode.”
The content has been rewritten for clarity and SEO, removing introductory or concluding phrases. It now provides a concise and informative overview of Kraken’s recent layoffs, organizational changes, and the appointment of Arjun Sethi as co-CEO. The article also highlights the reasons behind the restructuring, Kraken’s commitment to global crypto adoption, and the broader context of layoffs in the crypto industry.