Kraken Cuts Hundreds of Jobs Amid IPO Prep and Business Streamlining

Crypto exchange Kraken has laid off hundreds of employees across various departments over the past several months as part of its strategy to streamline operations ahead of a potential U.S. IPO. The downsizing follows an earlier layoff of 400 staff members—roughly 15% of Kraken’s workforce—in October last year, coinciding with Arjun Sethi’s appointment as co-CEO alongside David Ripley.

Sources familiar with the situation revealed that layoffs have continued beyond the initial 15%, with job cuts occurring in waves as the company aims to improve its EBITDA (earnings before interest, taxes, depreciation, and amortization). One source described the process as a “rolling program of firings,” targeting redundancies across all functions to create a leaner, more agile organization.

Kraken’s leadership had previously acknowledged the need to reduce “organizational layers” and restructure for efficiency. Despite the ongoing workforce reductions, Kraken maintains it is experiencing strong business growth. The company has expanded its offerings by acquiring the derivatives platform NinjaTrader and recently announced plans to enter the stock trading market.

A Kraken spokesperson emphasized that the firm is launching more products than ever, driving revenue growth, and continuing to hire in strategic areas. “We continuously evaluate our workforce to ensure it aligns with our priorities,” the spokesperson said, adding that the decision to cut roles was taken with discipline and focus.

As several major crypto firms prepare for public listings, Kraken’s aggressive cost-cutting and portfolio expansion signal a calculated push toward profitability and investor readiness. The company’s recent moves highlight a broader trend in the crypto industry: tightening operations while pursuing ambitious growth in competitive financial markets.