Cryptocurrency exchange Kraken is making headlines, laying off hundreds of employees to streamline operations for a potential U.S. initial public offering (IPO) in 2026. The bold move, aimed at boosting efficiency, follows a major restructuring.
Kraken Lets Workers Go
Kraken, a top global crypto exchange, has cut hundreds of jobs across all departments in recent months, with sources estimating the layoffs at around 15% of its 2,600-strong workforce, roughly 400 employees. The layoffs began in October 2024, coinciding with the appointment of Arjun Sethi as co-CEO alongside David Ripley.
The restructuring included acquiring NinjaTrader for $1.5 billion in March 2025 to expand into traditional finance. Previously, the exchange laid off 1,100 workers (30% of its staff) in November 2022 amid a crypto market downturn following the FTX collapse. In 2024, other crypto firms like Consensys and dYdX also slashed jobs, reflecting industry-wide cost-cutting.
Impact of the Layoffs
Kraken’s job cuts signal an important shift as it prepares for a potential IPO, aiming to attract investors by showcasing efficiency and profitability. However, the layoffs have raised concerns among employees and the crypto community, with some on X questioning the timing amid Bitcoin’s recent rally.
“Kraken’s layoffs ahead of IPO highlight the brutal reality of streamlining for profitability, but at what cost to innovation?” the post reads.
The move reflects broader industry challenges as firms face regulatory scrutiny and market volatility. Kraken’s shift to traditional finance, including stock trading and acquisitions, may strengthen its market position but risks alienating crypto purists. The layoffs could boost short-term earnings but may impact morale and innovation if key talent is lost. Globally, the crypto sector faces pressure to adapt, with Kraken’s restructuring highlighting the delicate balance between growth and stability as it eyes a public debut.
Meanwhile, despite the latest disturbing development, Kraken has kept on expanding its investment plans. For example, in a blog post, it recently announced that it is expanding its trading options to include new asset classes, equities, and exchange-traded funds (ETFs). The crypto exchange will introduce commission-free trading for more than 11,000 U.S.-listed stocks and ETFs.
