Kraken exchange has recently made the tough decision to lay off about 400 employees, which amounts to a 15% reduction in its workforce. This move is part of a broader effort to streamline operations and enhance “organizational discipline” after experiencing significant growth that pushed its revenue past the $1 billion mark. The layoffs primarily affect senior management and executive positions.
In a heartfelt message on their blog, Kraken expressed their appreciation for the contributions of those affected by the layoffs, stating their commitment to support them during this challenging transition. This announcement comes as Arjun Sethi steps into the role of co-CEO alongside Dave Ripley.
The exchange‘s restructuring reflects a wider trend in the cryptocurrency sector, where several companies are also downsizing. For instance, dYdX recently cut 35% of its core team, and Consensys, the firm behind MetaMask, announced a 20% workforce reduction, citing economic challenges and regulatory pressures from the U.S. Securities and Exchange Commission (SEC).
Looking to the future, Kraken has ambitious plans, including the launch of its own blockchain named “Ink” in 2025, which aims to facilitate decentralized trading, borrowing, and lending without the need for intermediaries. At the same time, Kraken is engaged in a legal dispute with the SEC, which claims that certain digital assets offered by the company are unregistered securities.
