Kraken Lays Off 15% of Workforce, Appoints New Co-CEO
Kraken announced layoffs as part of its organizational restructuring. The exact number of affected roles is unclear, but New York Times reporter Mike Isaac cited sources indicating that 15% of the workforce was impacted.
A blog post from Kraken explained the need for a leaner structure, stating that the company had built excessive managerial layers and siloed profit and loss responsibilities, which could lead to misaligned incentives. This restructuring aligns with industry trends, as noted by Consensys CEO Joe Lubin, who recently laid off 20% of his staff.
Lubin emphasized the future economy's shift towards smaller, more agile companies using AI and Web3 tools for efficiency.
Kraken also appointed Arjun Sethi as co-CEO alongside Dave Ripley; Sethi previously served on the board. Additionally, dYdX announced a 35% workforce reduction, impacting approximately 50 employees. Other firms, such as Helium’s parent company and Matter Labs, have also reported significant layoffs in recent months.
This news follows Kraken's announcement of launching its own layer-2 solution called Ink, aimed at attracting new users to DeFi, similar to Coinbase's Base launched last year.