Kraken, a popular cryptocurrency exchange, recently made an announcement regarding significant organizational changes that have resulted in a round of layoffs. The purpose of these changes is to streamline operations, become more efficient, and refocus the company’s mission. As part of this restructuring, Arjun Sethi, the co-founder of Tribe Capital, has been appointed as the new co-CEO of Kraken.
The exchange expressed gratitude towards the employees who have contributed to its success and acknowledged the impact that these changes have on people’s lives. According to reports from sources familiar with the matter, the layoffs affected approximately 15% of Kraken’s workforce. This is not the first time Kraken has had to downsize its staff, as a similar situation occurred in November 2022 when 1,100 employees were let go, representing 30% of the workforce.
The structural changes implemented by Kraken are aimed at reducing bureaucracy, eliminating unnecessary layers of management, and placing a stronger emphasis on product innovation, data-driven decision-making, and accountability within its engineering, product, and design teams. The exchange recognized that its growth beyond $1 billion in revenue had unintentionally created management silos, leading to departments operating in isolation with separate profit and loss frameworks. By reducing these organizational layers, Kraken aims to ensure that key contributors can focus on building and innovating rather than getting bogged down by managerial responsibilities.
Kraken emphasized that the revamped structure will make the company more agile, efficient, and better equipped to make client-centered decisions quickly. Despite the recent layoffs, Kraken remains dedicated to driving global crypto adoption and positioning itself as a bridge between traditional finance and the digital world.
Interestingly, the announcement of the layoffs came shortly after Kraken revealed its plans for an Ethereum-based layer-2 blockchain called Ink, which will leverage Optimism’s infrastructure technology through a 25 million OP tokens deal with the Optimism Foundation. This move underscores Kraken’s commitment to innovation and staying at the forefront of blockchain technology.
It’s worth noting that Kraken is not the only crypto company to announce layoffs recently. Consensys, a blockchain services provider, laid off 20% of its staff as part of a restructuring effort, while dYdX, a decentralized exchange, announced a 35% reduction in its workforce to refocus on startup mode.
Overall, the changes at Kraken reflect the rapidly evolving and competitive nature of the cryptocurrency industry, where companies must adapt quickly to stay ahead. By streamlining operations, refocusing its mission, and appointing a new co-CEO, Kraken is positioning itself for continued success in the dynamic world of crypto finance.
