Kraken has reportedly laid off 15% of its workforce, according to sources with insider knowledge cited by New York Times journalist Mike Isaac. This week, the San Francisco-based cryptocurrency exchange followed in the footsteps of other crypto firms, such as Consensys and DYDX, in reducing its headcount.
The announcement comes as Kraken introduces a new co-CEO, Arjun Sethi, co-founder of Tribe Capital, and emphasizes “organizational discipline decisions” aimed at addressing internal challenges. While the specifics of the layoffs were not detailed, Kraken’s statement and social media discussions indicate that the cuts primarily impacted C-suite executives and managerial staff. A blog post highlighted that certain organizational structures had hindered innovation among team leaders.
“To ensure our top contributors are focused on building rather than managing, we are empowering our leaders to create best-in-class products, utilize data-driven decisions for our clients, and hold engineering, product, and design teams accountable for results,” the Kraken statement read.
Kraken’s layoffs mark the third instance of workforce reductions among U.S. crypto firms this year, albeit for varying reasons. Consensys, the developer of MetaMask and Ethereum infrastructure, reduced its staff by 20%, with CEO Joe Lubin citing regulatory scrutiny and macroeconomic pressures. Meanwhile, DYDX, a decentralized exchange, terminated 35% of its employees shortly after CEO Antonio Juliano’s return, impacting several core team members.
This isn’t Kraken’s first round of layoffs; the company previously adjusted its workforce in 2022 amid a downturn in the cryptocurrency market, letting go approximately 30% of its staff, or about 1,100 employees, due to the volatility caused by Bitcoin‘s decline and significant bankruptcies like that of FTX.
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