Kraken announces layoff, appoints Tribe Capital co-founder as new co-CEO amid restructuring

Kraken announced on Oct. 30 a round of layoffs described as “organizational changes” designed to streamline operations and refocus its mission and appointed Arjun Sethi as its co-CEO.

Sethi is the co-founder of the venture capital fund Tribe Capital.

The exchange stated:

“Making organizational changes is never easy, and we understand their profound impact on people’s lives. We deeply appreciate those who helped us get here and for their many contributions, and we will support them during this transition.”

Mike Isaac, a tech journalist at the New York Times, reported that two people familiar with the matter said the layoff impacted 15% of Kraken’s workforce.

Kraken’s last round of layoffs occurred in November 2022, when the exchange laid off 1,100 employees, equivalent to 30% of its workforce.

Organizational efforts

According to the announcement, the structural changes aim to reduce bureaucracy, eliminate managerial layers, and renew the emphasis on product innovation, data-driven decision-making, and accountability across its engineering, product, and design teams.

The exchange detailed that its path beyond $1 billion in revenue had inadvertently created management silos, with departments operating in isolation under separate profit and loss frameworks. 

Thus, Kraken emphasized the need to reduce these “organizational layers,” ensuring that top contributors are focused on building and innovating rather than managing. 

Additionally, Kraken noted that the reshaped structure will be “leaner and faster” and enable more nimble, client-centered decisions. It will also empower leaders to enhance the company’s global crypto offerings.

The exchange claimed it remains committed to driving global crypto adoption despite the layoffs, positioning itself as a bridge between traditional finance and the digital world.

The layoffs come less than a week after the exchange announced its Ethereum-based layer-2 blockchain Ink. The network will tap Optimism’s infrastructure technology due to a 25 million OP tokens deal with the Optimism Foundation.

Notably, that is the third layoff round among crypto companies this week. Blockchain services provider Consensys laid off 20% of its staff on Oct. 29, citing restructuring efforts.

Meanwhile, dYdX CEO Antonio Juliano announced that DEX would reduce its workforce by 35% as part of its decision to “go back to startup mode.”

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