Kraken Reduces Workforce by 15% and Appoints New Co-CEO

Kraken Reduces Workforce by 15% and Appoints New Co-CEO

Kraken has made headlines this week as the cryptocurrency exchange announced a significant restructuring move that includes laying off 15% of its workforce while welcoming a new co-CEO. The company appointed Arjun Sethi a veteran Silicon Valley executive as co-CEO alongside Dave Ripley who has held the CEO position since 2023 following the departure of founder Jesse Powell due to internal conflicts with staff. Sethi has been a member of Kraken's board for nearly four years prior to this appointment.

Workforce Reduction Details and Leadership Changes

According to a report by the New York Times Kraken has laid off approximately 400 employees out of a total of 2,600. The layoffs affected key figures within the organization including Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar. When approached for further details regarding the layoffs a Kraken spokesperson chose not to comment on the specific percentage of job cuts or the overall scope of the changes.

Strategic Shift Towards Building and Innovation

In a blog post released on Wednesday both Sethi and Ripley acknowledged that Kraken had "fallen into the trap of building organization layers." They explained that the previous structure involving managers overseeing team outcomes sometimes led to suboptimal decision-making. Moving forward Kraken intends to concentrate on engaging its top contributors in building rather than managing. The blog post also noted that the company’s net revenue has exceeded $1 billion reflecting the firm’s financial strength despite the workforce reduction.

Broader Trend of Layoffs in the Crypto Industry

The layoffs at Kraken are part of a broader trend affecting the cryptocurrency sector. Earlier this year Kraken aimed to raise $100 million in funding as a preparatory step for a potential initial public offering IPO. However the funding round has not yet been completed. Other companies within the industry have also announced layoffs including Consensys which reduced its workforce by over 160 employees or 20%. CEO Joseph Lubin attributed these cuts to the perceived negative impact of the SEC’s regulatory actions on innovation and growth in the crypto space.

Additionally dYdX the decentralized exchange platform reported a reduction of 35% in its core team as part of its restructuring efforts. These workforce reductions come despite a current surge in the cryptocurrency market with Bitcoin recently trading around $72,256 which represents a 7% increase over the past week and suggests the potential for a new peak.