Summary

Kraken has laid off hundreds of employees across its operations over recent months, as part of a strategy to streamline its business ahead of a possible public offering in the United States. According to sources familiar with the matter, this move follows an earlier round of layoffs last October, when the company reduced its workforce by 400, or about 15%. This reduction coincided with the appointment of Arjun Sethi as co-CEO, alongside David Ripley.

Key Points

• Kraken has reportedly terminated hundreds of positions in a continuous effort to enhance operational efficiency as it looks toward a public listing.
• Previously, the company cut around 400 staff members late last year during a restructuring phase after appointing a new leadership team.

Industry insiders indicate that the ongoing layoffs are part of a deliberate effort to boost Kraken’s EBITA (earnings before interest, taxes, and amortization), as numerous cryptocurrency firms brace for IPOs in the near future. Sethi and Ripley’s guidance on downsizing was framed within a mission to remove unnecessary layers within the management structure of Kraken, aiming for a more agile and responsive organization.

Kraken’s spokesperson stated, “We are making the difficult decision to eliminate certain roles and consolidate teams where redundancies exist, while continuing to hire in key areas of the business.”

Noteworthy Developments

• The company has been actively pursuing revenue growth through strategic acquisitions, such as the purchase of NinjaTrader, a derivatives platform, alongside expanding into stock trading.

For more information about Kraken and its ongoing developments, visit CoinDesk.