Kraken appointed a co-CEO on Wednesday amid reports that the crypto exchange has laid off 15% of its workforce as part of a restructuring.
The company named longtime Silicon Valley executive Arjun Sethi as co-chief executive alongside Dave Ripley. Ripley assumed the CEO role in 2023 after founder Jesse Powell stepped down after internal conflicts with employees. Prior to the late move, Sethi was on Kraken’s board for nearly 4 years.
According to the New York Times, Kraken laid off 400 of its 2,600 employees. This reduction included two prominent leaders: Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar.
When asked for specifics on the layoffs, a Kraken spokesperson declined to comment on the percentage and full scope of the changes.
Kraken Refocuses on Building Over Managing
In a Wednesday blog post, Sethi and Ripley admitted Kraken “fell into the trap of building organisation layers.” They explained the company had assigned managers to oversee team outcomes, but this setup sometimes led managers to make poor decisions. Now, Kraken is focusing on keeping its top contributors engaged in building rather than managing.
“The next chapter of Kraken starts today. LFG,” they added. Further, the blog states that the company’s net revenue has surpassed $1b.
Crypto Industry Tightens Workforce Amid Market Surge
Earlier this year, Kraken aimed to raise $100m in a funding round, planned as its final step before a potential IPO. However, so far it has not yet completed this funding round.
The recent layoffs are part of a larger wave sweeping through the crypto industry. Consensys reduced its workforce by over 160 employees, or 20%, with CEO Joseph Lubin attributing the cuts to what he describes as the SEC’s “abuse of power,” which he sees as stifling innovation and growth.
Likewise, dYdX’s CEO, Antonio Juliano, said Wednesday that the decentralized exchange platform reduced its core team by 35%.
These layoffs come even as the crypto market shows strength; Bitcoin last traded around $72,256, up 7% over the past week and nearing a new peak.
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