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On Wednesday, Kraken appointed a co-CEO amid reports that the cryptocurrency exchange has reduced its workforce by 15% as part of a restructuring effort.
The company has named veteran Silicon Valley executive Arjun Sethi as co-chief executive alongside Dave Ripley. Ripley took on the CEO position in 2023 after founder Jesse Powell resigned following internal disputes with staff. Before this recent appointment, Sethi had been a member of Kraken’s board for nearly four years.
As reported by the New York Times, Kraken has laid off 400 of its 2,600 employees. This workforce reduction included two key figures: Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar.
When approached for details regarding the layoffs, a spokesperson for Kraken refrained from commenting on the percentage and overall extent of the changes.
Kraken Shifts Focus to Development Over Management
In a blog post published on Wednesday, Sethi and Ripley acknowledged that Kraken “fell into the trap of building organisation layers.” They clarified that the company had appointed managers to oversee team performance, but this arrangement occasionally resulted in poor decision-making by managers. Currently, Kraken is prioritizing the engagement of its top contributors in development rather than management.
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“The next chapter of Kraken starts today. LFG,” they stated. Additionally, the blog mentions that the company’s net revenue has exceeded $1 billion.
Crypto Sector Reduces Workforce Amid Market Growth
Earlier this year, Kraken sought to secure $100 million in a funding round, intended as its final step before a potential IPO. However, it has yet to finalize this funding round.
The recent layoffs are part of a broader trend affecting the cryptocurrency sector. Consensys cut its workforce by over 160 employees, or 20%, with CEO Joseph Lubin attributing the reductions to what he describes as the SEC’s “abuse of power,” which he believes is hindering innovation and growth.
Similarly, dYdX’s CEO, Antonio Juliano, announced on Wednesday that the decentralized exchange platform has reduced its core team by 35%.
These layoffs occur even as the cryptocurrency market demonstrates resilience; Bitcoin was last traded at approximately $72,256, reflecting a 7% increase over the past week and approaching a new high.
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