Kraken Reportedly Sheds "Hundreds" of Staff in Streamlining Effort as IPO Prep Intensifies

Cryptocurrency exchange giant Kraken has reportedly laid off "hundreds" of employees across various departments in recent months as it continues to streamline its operations in anticipation of a potential public listing in the United States, according to sources familiar with the matter, Coindesk reported on Friday.

This latest reduction in workforce follows a significant layoff of 400 staff, approximately 15% of its total, in late October of last year , coinciding with Silicon Valley investor and Kraken board member Arjun Sethi becoming co-CEO alongside David Ripley.

According to a person familiar with the situation, speaking to CoinDesk, the job cuts have been an "ongoing thing" since Sethi's appointment, going beyond the 15% reduction announced previously. "They're culling aggressively across all functions, and it's a constant and ongoing thing. It’s about improving Kraken’s EBITA [earnings before interest, tax and amortization]," the source told CoinDesk.

When the co-CEO structure was implemented last year, Sethi and Ripley had indicated a need to shed "organizational layers" to make the business "leaner and faster," a move now seemingly being executed through these staff reductions.

Kraken, like several other crypto firms, is reportedly preparing for a potential initial public offering (IPO) either later this year or in early 2026. In addition to streamlining its workforce, the exchange has been actively pursuing revenue growth through strategic acquisitions, such as the recent agreement to acquire derivatives platform Ninja Trader, and by expanding its product offerings to include commission-free stock and ETF trading for U.S. customers.

Despite the reported layoffs, a Kraken spokesperson provided a statement to CoinDesk emphasizing the company's overall positive trajectory. "Kraken's business is thriving. We're launching more new products than ever before, driving strong revenue growth, and rapidly expanding across our entire product portfolio — including through the agreement to acquire NinjaTrader, announced earlier this year," the spokesperson said.

The spokesperson further acknowledged the workforce adjustments, stating, "At the same time, we continuously evaluate our workforce to ensure it aligns with our strategic priorities. We're approaching this with discipline and intention, making the difficult decision to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business."

As previously reported , Kraken's expansion into traditional equities with commission-free stock and ETF trading for select U.S. clients marks a pivotal step in its ambition to become a comprehensive investment platform. Co-CEO Arjun Sethi had previously stated that this move into equities is a "natural step" for Kraken as it aims to build a "seamless, all-in-one trading experience" and pave the way for asset tokenization.

The reported layoffs, while potentially concerning for affected employees, appear to be a strategic maneuver by Kraken to optimize its financial performance and operational efficiency as it gears up for its anticipated IPO in the competitive U.S. market.