Kraken announced layoffs impacting 15% of its workforce, or around 400 positions, following recent structural changes.
This move, first reported by the New York Times, coincides with Arjun Sethi stepping in as co-CEO alongside Dave Ripley.
Kraken Is Planning to Overhaul Organizational Structure
Kraken cited the need for “organizational discipline” in a blog post, stating that it plans to streamline management structures that expanded as the company’s revenue surpassed $1 billion.
Although specific roles affected weren’t disclosed, statements from the company and discussions online suggest that senior management and C-suite roles took the brunt of the cuts.
Read More: Kraken Review 2024 – A Review of Its Security and Features
“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,” Kraken wrote in its blog.
These layoffs reflect a larger trend in the crypto industry, which has seen numerous staff reductions. Decentralized derivatives platform dYdX announced a 35% reduction in its core team earlier today.
Also, blockchain firm Consensys, developer of MetaMask, confirmed a 20% layoff earlier this week. This would affect over 160 positions in the company.
Consensys cited economic pressures and regulatory challenges with the SEC.
Kraken’s restructuring aims to streamline operations ahead of several new developments set for 2025.
The exchange is planning to launch its proprietary blockchain, Ink, which will enable decentralized trading, borrowing, and lending without intermediaries.
Read More: Kraken Fees vs. Binance Fees vs. Coinbase Fees: A Detailed Comparison
The company also remains engaged in a legal dispute with the SEC, which accuses Kraken of offering unregistered securities in the form of certain digital assets.
Kraken has challenged these claims, arguing that tokens like ADA, ALGO, and SOL do not meet the U.S. definition of securities and has criticized the SEC’s stance as regulatory overreach and lacking in clarity.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
