Kraken Joins Crypto Industry Layoffs with 15% Workforce Reduction

In a move reflecting widespread retrenchment across the crypto sector, San Francisco-based Kraken has announced layoffs impacting 15% of its workforce. According to sources cited by The New York Times, this decision aligns Kraken with other major players, including ConsenSys and DYDX, that have also cut staff in recent weeks.

Kraken’s recent leadership change with the appointment of Arjun Sethi, Tribe Capital co-founder, as co-CEO accompanies what the company describes as “organizational discipline decisions” aimed at refocusing the company’s efforts. Although no specifics were provided on which roles were eliminated, Kraken’s public statements and online discourse indicate that the reductions largely target C-suite executives and managerial positions. In a blog post, Kraken stated that previous structural arrangements had hindered innovation, prompting a shift toward empowering “top contributors” to focus on development and client-centric solutions.

“We need to make sure our top contributors are focused on building rather than managing. This means we give more power to our leaders to build best-in-class products, leverage data to make decisions that are best for our clients, and make engineering, product, and design teams all feel more accountable for results,” Kraken stated.

Kraken’s downsizing follows significant headcount reductions across the crypto industry, driven by market fluctuations and regulatory pressures. Ethereum-focused ConsenSys, which develops the MetaMask wallet, recently announced a 20% staff reduction, with CEO Joe Lubin citing regulatory concerns and macroeconomic uncertainties. Similarly, decentralized exchange DYDX laid off 35% of its team, including key personnel, shortly after CEO Antonio Juliano’s return to the firm.

Kraken previously downsized in 2022, laying off approximately 1,100 employees, or 30% of its workforce, following a market downturn triggered by Bitcoin’s decline and the collapse of industry giants like FTX.

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