Kraken Cuts Hundreds of Jobs as It Prepares for U.S. Public Listing

Crypto exchange Kraken has reportedly laid off hundreds of employees across multiple departments in recent months, as part of ongoing efforts to streamline operations ahead of a potential U.S. public listing, sources familiar with the matter told CoinDesk.

The staff reductions span all areas of the business in a continued phase of restructuring that began late last year. In October, Kraken cut 400 roles—roughly 15% of its workforce—shortly after Silicon Valley investor and board member Arjun Sethi was appointed co-CEO alongside David Ripley. Ripley had taken over the CEO position in 2023 following the departure of founder Jesse Powell.

The layoffs reflect Kraken’s push to optimize its operations and costs amid a more competitive and regulated U.S. crypto landscape. The company has not publicly confirmed its IPO plans, but the internal changes suggest the exchange is preparing itself for increased scrutiny and investor readiness.

Kraken has also been expanding into new markets. It recently closed a $1.5 billion deal to acquire NinjaTrader, a futures brokerage founded in 2003 and registered with the U.S. Commodity Futures Trading Commission. The move strengthens Kraken’s position in the derivatives space and reflects its broader pivot into traditional asset classes like equities and payments.

Kraken, currently ranked among the top crypto exchanges globally, has yet to issue an official comment on the recent layoffs or confirm whether a public listing is imminent.

Earlier this year, Ethereum development giant Consensys announced a 20% staff reduction. Founder and CEO Joseph Lubin cited difficult macroeconomic conditions and regulatory uncertainties in his decision.

Decentralized derivatives platform dYdX also announced a major workforce reduction, laying off 35% of its team.

Other notable firms in the space, including Matter Labs, Polygon, Sorare, and Paxos, also made workforce reductions last year amid the challenging environment for crypto and web3 companies.  This wave of crypto-sector layoffs reflects companies’ adjustments amid industry dynamics where cost control is increasingly prioritized.