Kraken Joins Crypto Exodus with 15% Workforce Layoffs
It seems that the economic pinch on the cryptocurrency space has not yet come to an end. Kraken became one more amidst the rising exodus when it announced that it laid off 15% of its workforce. Sources close to the matter stated that it included many members from its C-suite and managerial ranks. The changes in corporate structure would facilitate efficiency and innovation.
New Leadership and Strategic Changes
Cutbacks at Kraken have come days into the new role of co-CEO Arjun Sethi. Sethi, a co-founder of Tribe Capital, has introduced what he termed “organizational discipline” to address issues within Kraken.
Kraken said in a statement that the restructuring will better focus the company on its core mission. “We need to make sure our top contributors are focused on building rather than managing,” the statement read, suggesting a strategic shift to empower product, design, and engineering teams with more autonomy.
Broader Crypto Industry Layoffs
Kraken is not the only crypto firm cutting jobs. Consensys, behind Ethereum-based products including MetaMask, let go 20% of its staff last week. The firm said the layoffs were because of increased regulatory pressure and a wider economic environment. In another case, decentralized exchange DYDX sacked 35% of its employees after CEO Antonio Juliano returned to the firm. Key teams took a hit in the layoffs.
A Recurring Pattern in Crypto Downsizing
This is not Kraken’s first workforce adjustment. In 2022, it laid off some 30% of its workforce-nearly 1,100 workers-following market turmoil after the fall of Bitcoin and subsequent collapses of major crypto players like FTX. Such recent lay-offs are a show of continued consolidation as companies position for both regulatory and market uncertainties in light of the recent changes.
Conclusion
As cryptocurrency companies navigate challenges across the board, Kraken’s latest layoffs reflect a trend of organizational restructuring for better efficiency and product focus. From change after change in leadership to strategy adjustments, Kraken finally joins the ranks with Consensys and DYDX in downsizing, adding yet another chapter to the crypto world’s wild ride.
