Kraken Cuts 15% of Jobs Amid Restructuring

Kraken has announced layoffs, reducing its workforce by 15%—about 400 roles—as part of a significant restructuring to simplify its operations. The company stated this move is part of its drive to implement "organizational discipline" by reducing management layers that had expanded with Kraken's revenue growth beyond $1 billion. Senior management and C-suite roles appear to be the primary areas impacted by these cuts.

In a statement, Kraken acknowledged the difficulty of these changes, emphasizing their gratitude toward the team members affected. "We deeply value those who have contributed to our journey and are committed to supporting them through this transition," the company wrote on its blog. This announcement coincides with Arjun Sethi stepping up as co-CEO, joining Dave Ripley at the helm.

Kraken's restructuring follows a trend in the crypto industry, where multiple companies are downsizing. Just this week, decentralized derivatives platform dYdX cut 35% of its core team, while Consensys, the company behind MetaMask, confirmed a 20% reduction in its workforce, affecting over 160 employees. Consensys attributed these layoffs to economic strains and regulatory pressure from the U.S. Securities and Exchange Commission (SEC).

Looking ahead, Kraken has big plans, including launching its own blockchain, "Ink," in 2025. This new platform is set to enable decentralized trading, borrowing, and lending without third-party involvement. Meanwhile, the company continues its legal battle with the SEC, which accuses Kraken of offering unregistered securities in the form of certain digital assets. Kraken disputes these claims, arguing that tokens such as ADA, ALGO, and SOL do not fit the U.S. definition of securities and considers the SEC's position unclear and overreaching.

These restructuring efforts are part of Kraken’s broader goal to enhance efficiency and prepare for future developments in the competitive crypto industry.