The Kraken crypto exchange giant has fired hundreds of employees in all areas of the business in recent months, since the company continues to rationalize its operations before a possible public list in the United States, according to two people familiar with the situation.
It was reported that Kraken had fired 400 employees, or about 15% of his workforce, at the end of October last year, when Silicon Valley’s investor and a member of the Kraken Junta, Arjun Sethi, became co-cement with David Ripley, who took the reins when former CEO Jesse Powell resigned in 2023.
Since Sethi became co-cement, “hundreds more have left,” said a person familiar with the situation, who pointed out a shooting program over the 15% cut at the end of last year.
“They are sacrificing aggressively in all functions, and it is something constant and continuous. It’s about improving Kraken’s ebita [earnings before interest, tax and amortization]”Said the person.
When the role of the CEO was divided last year, Sethi and Ripley said in a blog post that it was necessary to throw “organizational layers” that had accumulated in Kraken and make the business “thinner and more fast.”
Several cryptographic companies are currently obtaining their homes to launch an initial public offer (IPO) this year or early next year. Kraken has also been pressing for an increase in income by acquiring businesses such as the Ninja Trader derivative platform, for example, and recently announcing the addition of the negotiation of shares.
“Kraken’s business is thriving. We are launching more new products than ever before, promoting strong income growth and expands rapidly throughout our product portfolio, even through the agreement to acquire Ninjatrader, announced earlier this year,” said a Kraken representative to Coindesk.
“At the same time, we continually evaluate our workforce to ensure that it is aligned with our strategic priorities. We approach this with discipline and intention, making the difficult decision to eliminate certain roles and consolidate equipment where there are layoffs, while we continue to hire in key areas of the business,” Kraken’s spokesman said.
