Kraken Reduces Workforce by 15% in Major Restructuring
Kraken has announced a 15% workforce reduction, equating to approximately 400 positions, as part of a restructuring initiative aimed at streamlining operations. This decision is intended to implement "organizational discipline" by reducing management layers that expanded alongside revenue growth exceeding $1 billion. The cuts primarily affect senior management and C-suite roles.
Kraken expressed gratitude toward affected team members in its statement, noting the challenges posed by these changes. The company stated, "We deeply value those who have contributed to our journey and are committed to supporting them through this transition." This announcement coincides with Arjun Sethi's promotion to co-CEO, joining Dave Ripley.
This restructuring aligns with a broader trend in the crypto industry, where several companies are also downsizing. Recently, decentralized derivatives platform dYdX cut 35% of its core team, while Consensys, the developer behind MetaMask, confirmed a 20% workforce reduction, impacting over 160 employees. These layoffs at Consensys were attributed to economic pressures and regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC).
Looking ahead, Kraken plans to launch its own blockchain, "Ink," in 2025, which will facilitate decentralized trading, borrowing, and lending without third-party involvement. The company is also engaged in a legal battle with the SEC, which claims Kraken offered unregistered securities through certain digital assets. Kraken contests these allegations, asserting that tokens such as ADA, ALGO, and SOL do not meet the U.S. definition of securities, viewing the SEC's stance as unclear and overreaching.
These restructuring efforts are part of Kraken’s objective to improve efficiency and prepare for future developments within the competitive crypto landscape.