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Cryptocurrency exchange Kraken has announced a significant restructuring, including the layoff of 15% of its workforce and the appointment of a new co-CEO, Arjun Sethi.
Sethi, who has served on the Kraken board since 2021, also serves as co-founder and chairman of Tribe Capital and is widely recognized as one of the top early-stage venture investors in Silicon Valley
But first, a house clean was in order – in a blog post, Sethi and co-CEO Dave Ripley explained that the round of layoffs was necessary to "become leaner and faster."
The cuts will affect approximately 400 employees, including high-level executives such as former COO Gilles BianRosa and CTO Vishnu Patankar, according to the New York Times, citing two unnamed sources.
"We are making organizational discipline decisions to tackle this problem and eliminate layers. We need to make sure our top contributors are focused on building rather than managing," the co-CEOs said.
The recent layoffs at Kraken follow similar moves by other prominent crypto companies, including Consensys and dYdX. These cuts highlight the ongoing challenges faced by the industry, even as the broader cryptocurrency market continues to recover from the FTX debacle.
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This isn't the first time Kraken has undergone significant restructuring. In 2022, the company laid off 1,100 employees amid a broader industry downturn triggered by the collapse of FTX. The company has also faced internal turmoil and regulatory scrutiny in recent years.
Despite the challenges faced by the cryptocurrency industry, Kraken remains optimistic about its future. However, the competitive landscape and evolving regulatory environment necessitate strategic adjustments.
Last week, Kraken unveiled its new Layer 2 (L2) blockchain, Ink, built on Optimism's Superchain. Designed to provide users with a seamless and accessible gateway to decentralized finance (DeFi), Ink will roll out its testnet later this month, with a Q1 2025 launch planned.
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